Daily Pivots: (S1) 1.1043; (P) 1.1188; (R1) 1.1321; More…
EUR/USD dropped to as low as 1.1055 and breached 1.1095 support, but quickly recovered. Intraday bias remains neutral first. On the downside, firm break of 1.1096 will argue that whole rebound form 1.0777 has completed, after rejection by 1.1496 fibonacci resistance. Intraday bias will be turned to the downside for retesting 1.0777 low. Though, rebound from current level will retain near term bullishness and bring another rally through 1.1496 at a later stage.
In the bigger picture, a medium term bottom should have formed at 1.0777 after drawing support from 78.6% retracement of 1.0339 (2017 low) to 1.2555 at 1.0813. Sustained break of 38.2% retracement of 1.2555 to 1.0777 at 1.1456 will raise the chance of medium term bullish reversal and target 61.8% retracement at 1.1876. Rejection by 1.1456 will suggests that price actions from 1.0777 are merely a correction. Another fall below 1.0777 low would be seen at a later stage in this case.
