Sat, Sep 18, 2021 @ 04:41 GMT

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.1834; (P) 1.1871; (R1) 1.1898; More

EUR/USD’s breach of 1.1846 support suggests that fall from 1.2265 is resuming. Intraday bias is back on the downside, such fall is seen as the third leg of the consolidation pattern from 1.2348. Deeper decline would be seen back to 1.1703 support. On the upside, break of 1.1974 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish 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. 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.

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