Daily Pivots: (S1) 1.0918; (P) 1.0988; (R1) 1.1106; More…
EUR/USD’s rebound from 1.0635 was stronger than expected and broke 1.0981 minor resistance. Further rise will now be in favor as long as 1.0888 minor support holds, for 61.8 retracement of 1.1496 to 1.0635 at 1.1167 next. Considering bullish convergence condition in daily MACD, sustained break of 1.1167 will raise the chance of larger reversal and turn focus to 1.1496 key resistance. On the downside, break of 1.0888 will argue that the rebound has completed and turn bias back to the downside for retesting 1.0635 low.
In the bigger picture, whole down trend form 1.2555 (2018 high) should have resumed. Next target is 61.8% projection of 1.2555 to 1.0777 from 1.1496 at 1.0397. This level is close to 1.0339 (2017 low). On the upside, break of 1.1496 resistance is needed to indicate medium term reversal. Otherwise, outlook will remain bearish even in case of strong rebound.
