Daily Pivots: (S1) 1.1684; (P) 1.1734; (R1) 1.1760; More…
Intraday bias in EUR/USD remains neutral at this point. On the downside, break of 1.1705 will resume larger fall to 1.1602/1703 key support zone again. We’d look for strong support from there to rebound. But sustained break will carry larger bearish implication and target 1.1289 fibonacci support. On the upside, above 1.1804 will target 1.1907 resistance first.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally remains in favors long as 1.1602 support holds, to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). 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. Deeper fall would be seen to 61.8% retracement of 1.0635 to 1.2348 at 1.1289 and below.
