Daily Pivots: (S1) 1.1723; (P) 1.1735; (R1) 1.1747; More..
EUR/USD rebounds notably today and immediate focus is now on 1.1768 minor resistance. Firm break there will confirm short term bottoming and bring stronger rise to 1.1907 resistance. As by then, EUR/USD should have draw strong support from support from 1.1602/1703 support zone. Firm break of 1.1907 should indicate near term bullish reversal. Nevertheless, on the downside, sustained break of 1.1602 will argue that it’s already reversing the trend from 1.1603, and target 61.8% retracement of 1.1603 to 1.2348 at 1.1289.
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.
