Daily Pivots: (S1) 1.1815; (P) 1.1874; (R1) 1.1903; More….
EUR/USD recovers after hitting 100% projection of 1.2348 to 1.1951 from 1.2242 at 1.1845. Intraday bias is turned neutral first. We’d continue to pay attention to bottoming signal at current level. On the upside, break of 1.1951 support turned resistance will indicate short term bottoming and turn bias to the upside. However, decisive break of 1.1845 will extend the correction to 38.2% retracement of 1.0635 to 1.2348 at 1.1694.
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.
