Daily Pivots: (S1) 1.1037; (P) 1.1100 (R1) 1.1139; More…..
EUR/USD drops sharply to as low as 1.1033 and the firm break of 1.1107 low confirms resumption of down trend from 1.2555. Intraday bias is back on the downside. Next near term target is 161.8% projection of 1.1412 to 1.1193 from 1.1282 at 1.0928. On the upside, break of 1.1162 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development suggests that down trend from 1.2555 (2018) is in progress and extending. Prior rejection of 55 week EMA also maintained bearishness. Further fall should be seen to 78.6% retracement of 1.0339 to 1.2555 at 1.0813. Decisive break there will target 1.0339 (2017 low). On the upside, break of 1.1412 resistance is needed to indicate medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.