Daily Pivots: (S1) 0.7170; (P) 0.7221; (R1) 0.7300; More…
With 4 hour MACD crossed below signal line, a temporary top is in place at 0.7295 and intraday bias is turned neutral. Another rise is mildly in favor with 0.7180 minor support intact. Above 0.7295 will target 0.7393 cluster resistance (61.8% projection of 0.6722 to 0.7235 from 0.7076 at 0.7393). We’d expect strong resistance from there to limit upside to complete the rebound. On the downside, break of 0.7180 minor support will turn bias back to the downside for 0.7076 support. However, sustained break of 0.7393 will indicate near term reversal and target 100% projection at 0.7589 next).
In the bigger picture, the failure to sustain below 0.6826 (2016 low) suggests that the long term down trend is not ready to resume yet. But prior rejection by 55 week EMA indicates underlying medium term bearishness in the pair. Outlook will also bearish as long as 0.7393 resistance holds. On the downside, sustained break of 0.6826 will target 0.6008 (2008 low).
