Daily Pivots: (S1) 1.1950; (P) 1.2042; (R1) 1.2090; More…
EUR/USD’s fall from 1.2265 accelerates lower and it’s now pressing 1.1985 support. Sustained break there should confirm that consolidation pattern from 1.2348 is already in the third leg. Deeper decline should be seen to retest 1.1703 support next. On the upside, above 1.2092 minor resistance will turn intraday bias back to the upside for retesting 1.2265 instead.
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. Reaction from 1.2555 should reveal underlying long term momentum in the pair. However sustained break of 1.1602 will argue that the rise from 1.0635 is over, and turn medium term outlook bearish again.
