Daily Pivots: (S1) 1.1329; (P) 1.1384; (R1) 1.1429; More…..
Intraday bias in EUR/USD is turned neutral with 4 hour MACD crossed below signal line. Another rise is still expected with 1.1335 minor support intact. Prior break of 1.1419 resistance is taken as the first sign of medium term bottom. Break of 1.1448 will target 1.1514/1569 resistance zone first. However, break of 1.1335 will turn bias back to the downside for retesting 1.1176 low.
In the bigger picture, current development suggests that a medium term bottom could be formed at 1.1176 already. That came after hitting 61.8% retracement of 1.0339 (2016 low) to 1.2555 (2018 high) at 1.1186, on bullish convergence condition in daily MACD. Further rally could be seen back to 38.2% retracement of 1.2555 to 1.1176 at 1.1703. It’s a bit early to confirm medium term bullish reversal. The structure of the rise from 1.1176 and reaction to 1.1703 fibonacci level will be watched for making an assessment later. But in any case, decisive break of 1.1176 is needed to confirm resumption of down trend. Otherwise, outlook is neutral at worst.
