Daily Pivots: (S1) 1.1988; (P) 1.2026; (R1) 1.2054; More….
EUR/USD’s pull back from 1.2149 continues today but outlook is unchanged. We’d still expect strong support from 38.2% retracement of 1.1703 to 1.2149 at 1.1979 to complete the pull back from 1.2149. On the upside, 1.2075 minor resistance will turn bias back to the upside for 1.2149 resistance. Break there will resume the rise from 1.1703 to 1.2242/2348 resistance zone. However, firm break of 1.1979 will bring deeper fall to 61.8% retracement at 1.1873.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. However, sustained break of 1.1602 will argue that whole rise from 1.10635 has completed. Deeper fall would be seen to 61.8% retracement of 1.0635 to 1.2348 at 1.1289.