Daily Pivots: (S1) 1.0957; (P) 1.1001; (R1) 1.1024; More

EUR/USD drops to as low as 1.0725 today and break of 1.0777 low argues that medium term down trend might be resuming. Intraday bias stays on the downside for now. Sustained trading below 1.0777 will pave the way to 61.8% projection of 1.2555 to 1.0777 from 1.1496 at 1.0397. ON the upside, though, break of 1.1045 resistance will indicate short term bottoming and turn bias to the upside for rebound.

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In the bigger picture, rebound from 1.0777 low faced heavy rejection from 38.2% retracement of 1.2555 to 1.0777 at 1.1456, as well as 55 month EMA. The development argues that price actions from 1.0777 medium term pattern were just correcting the down trend from 1.2555 (2018 high). Further decline is in favor to retest 1.0339 (2017 low). Nevertheless, sustained break of 1.1456 will raise the chance of medium term bullish reversal and target 61.8% retracement at 1.1876.

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