Daily Pivots: (S1) 1.1387; (P) 1.1417 (R1) 1.1467; More…..
EUR/USD faces some resistance from 4 hour 55 EMA (now at 1.1442) and retreats mildly. But for now, recovery from 1.1300 short term bottom is still in favor to extend higher for 1.1509 support turned resistance. However, we’d expect upside to be limited below 1.1745 resistance to bring down trend resumption. On the downside, break of 1.1300 support is now needed to confirm down trend resumption. Otherwise, near term outlook is neutral for more consolidation first.
In the bigger picture, the down trend from 1.2555 medium term is in progress for 61.8% retracement of 1.0339 to 1.2555 at 1.1186. Note again that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. That carries some long term bearish implications. Sustained break of 1.1186 could pave the way back to retest 1.0339 low. For now, outlook will remain bearish as long as 38.2% retracement of 1.2555 to 1.1300 at 1.1779 holds, even in case of strong rebound.
