Daily Pivots: (S1) 1.1740; (P) 1.1768 (R1) 1.1820; More….
A short term bottom is in place at 1.1716 with the current recovery, ahead of 38.2% retracement of 1.0339 to 1.2555 at 1.1708, on bullish convergence condition in 4 hour MACD. Intraday bias is turned neutral first. Some consolidations would be seen. But upside of recovery should be limited by 1.1995 resistance to bring fall resumption. On the downside, sustained break of 1.1708 will pave the way to 50% retracement at 1.1447 next.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further. Break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will pave the way to 61.8% retracement at 1.1186. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2113) holds.
