Daily Pivots: (S1) 0.8508; (P) 0.8534; (R1) 0.8576; More…
A temporary low was formed at 0.8489, ahead of 0.8472 key support, with subsequent recovery. Intraday bias is turned neutral first. After all, price actions from 0.8472 is seen as a consolidation pattern. In case of another rise, upside should be limited below 0.8681 resistance. On the downside, decisive break o 0.8472 will confirm resumption of down trend from 0.9101 and target 61.8% projection of 0.9101 to 0.8472 from 0.8681 at 0.8292 next.
In the bigger picture, medium term decline from 0.9306 (2017 high) is seen as a corrective move. Current development suggests that it’s extending through 0.8312 support towards 50% retracement of 0.6935 (2015 low) to 0.9306 at 0.8121. We’ll look for strong support around there to contain downside to complete the correction. But for now, break of 0.8681 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish in case of recovery.
