Daily Pivots: (S1) 0.8570; (P) 0.8636; (R1) 0.8697; More…
A temporary low should be in place at 0.8575 with 4 hour MACD staying well above signal line. Intraday bias is turned neutral for some consolidations first. Upside of recovery should be limited below 0.9019 resistance to bring fall resumption. On the downside, break of 0.8575 will extend the decline from 0.9324 to 100% projection of 0.9324 to 0.8786 from 0.9019 at 0.8481.
In the bigger picture, we’re now seeing 0.9324 as a medium term top on bearish divergence condition in weekly MACD. Price actions from there should develop into a corrective pattern. Deeper fall should be seen back to 38.2% retracement of 0.6935 to 0.9324 at 0.8411 but strong support should be seen there, at least on first attempt. On the upside, break of 0.9324 is needed to confirm up trend resumption. Otherwise, risk will stay on the downside even in case of strong rebound.
