EUR/USD Daily Outlook

Daily Pivots: (S1) 1.1256; (P) 1.1320; (R1) 1.1403; More

EUR/USD breached 1.1373 minor resistance briefly but dropped back into established range. Intraday bias remains neutral first. On the upside, firm break of 1.1373 will indicate short term bottoming at 1.1185. Intraday bias will be turned back to the upside for 55 day EMA (now at 1.1510). On the downside, break of 1.1185 will resume larger fall from 1.2348.

In the bigger picture, there are various ways of interpreting the fall from 1.2348 (2021 high). It could be a correction to rise from 1.0635 (2020 low), the fourth leg of a sideway pattern from 1.0339 (2017 low), or resuming long term down trend. In any case, outlook will now stay bearish as long as 1.1703 support turned resistance holds. Sustained break of 61.8% retracement of 1.0635 to 1.2348 at 1.1289 would pave the way back to 1.0635.

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