Daily Pivots: (S1) 1.1202; (P) 1.1213; (R1) 1.1221; More

EUR/USD drops further to as low as 1.1163 so far in early US session. Intraday bias remains on the downside for retesting 1.1107 low. At this point, we’re not expecting a break there yet. Thus, focus will be on bottoming signals around 1.1107. Though, break of 1.1282 resistance is needed to signal completion of fall from 1.1412. Otherwise, further decline is in favor even in case of recovery.

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In the bigger picture, on the one hand, 1.1107 is seen as a medium term bottom on bullish convergence condition in weekly MACD. On the other hand, rejection by 55 week EMA retains medium term bearishness. Outlook stays neutral for now. On the downside, break of 1.1107 will resume the down trend from 1.2555 (2018 high) to 78.6% retracement of 1.0339 to 1.2555 at 1.0813. Meanwhile, break of 1.1412 will resume the rebound to 38.2% retracement of 1.2555 to 1.1107 at 1.1660.

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