Daily Pivots: (S1) 1.0844; (P) 1.0867; (R1) 1.0904; More…
EUR/USD breached 38.2% retracement of 1.1095 to 1.0777 at 1.0898 briefly but quickly retreated. Intraday bias remains neutral first. We’d still expected upside of recovery to be limited by 1.0898. Firm break of 1.0777 will resume larger down trend. Though, firm break of 1.0898 will target 61.8% retracement at 1.0974.
In the bigger picture, down trend from 1.2555 (2018 high) has just resumed and prior rejection by 55 week EMA affirms medium term bearishness. Sustained break of 78.6% retracement of 1.0339 (2017 low) to 1.2555 at 1.0813 will pave the way to retest 1.0339 low. For now, outlook will remain bearish as long as 1.1239 resistance holds, in case of strong rebound.
