Daily Pivots: (S1) 1.1771; (P) 1.1803; (R1) 1.1825; More…
EUR/USD’s break of 1.1806 support suggest resumption of fall from 1.2265, as the third leg of the consolidation pattern from 1.2348. Intraday bias is now back on the downside for 1.1703 key support next. On the upside, break of 1.1894 resistance is need to indicate short term bottoming. Otherwise, deeper fall will remain in favor 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.
