Daily Pivots: (S1) 1.2025; (P) 1.2134; (R1) 1.2242; More….
As long as 1.2129 support holds, further rise is expected in EUR/USD. Current rally from 1.0635 should target 61.8% projection of 1.0635 to 1.2011 from 1.1602 at 1.2452 next. Though, considering bearish divergence condition in 4 hour MACD, break of 1.2129 support should confirm short term topping. Intraday bias will be turned back to the downside for deeper pull back.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. We’d be alerted to topping sign around 1.2516/55. But sustained break there will carry long term bullish implications.
