Daily Pivots: (S1) 1.1796; (P) 1.1825; (R1) 1.1839; More….
EUR/USD’s correction from 1.2348 is still in progress and intraday bias stays on the downside. Further fall would be seen to 38.2% retracement of 1.0635 to 1.2348 at 1.1694 and possibly mildly below. But we’d expect strong support from 1.1062 to contain downside to complete the correction. Though, break of 1.1988 resistance is needed to indicate short term bottoming. Otherwise, risk will stay on the downside even in case of recovery.
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.
