EUR/USD’s decline extended to as low as 1.1463 last week. As a temporary low formed, initial bias is neutral this week first. The break of 1.1525 indicates completion of rebound from 1.1300 to 1.1814, Thus, upside of recovery from 1.1463 should be limited below 1.1623 minor resistance to bring fall resumption. On the downside, below 1.1463 will target a test on 1.1300 low.
In the bigger picture, corrective pattern from 1.1300 could have completed at 1.1814 after hitting 38.2% retracement of 1.2555 to 1.1300at 1.1779. Decisive break of 1.1300 will resume the down trend from 1.2555 to 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. On the upside, break of 1.1814 will delay the bearish case and extend the correction from 1.1300 with another rise before completion.
In the long term picture, the rejection from 38.2% retracement of 1.6039 to 1.0339 at 1.2516 argues that long term down trend from 1.6039 (2008 high) might not be over yet. EUR/USD is also held below decade long trend line resistance. Firm break of 61.8% retracement of 1.0339 to 1.2555 at 1.1186 should at least bring a retest on 1.0339 low.
