Daily Pivots: (S1) 1.0631; (P) 1.0672 (R1) 1.0694; More…..
A temporary top is formed at 1.0713 in EUR/USD with 4 hour MACD crossed below signal line. Intraday bias is turned neutral first. At this point, we’re still favoring the bullish case. That is, whole rise from 1.0339 low is in progress and resuming. Above 1.0713 will target 1.0828 and above. However, since it’s seen as a corrective move, we’d expect upside to be limited by 100% projection of 1.0339 to 1.0828 from 1.0494 at 1.0983. The larger down trend is expected to resume later. On the downside, break of prior resistance at 1.0630 will turn bias back to the downside for retesting 1.0494 low.
In the bigger picture, as long as 1.1298 key resistance holds, whole down trend from 1.6039 (2008 high) is still expected to continue. Break of 1.0339 low will send EUR/USD through parity to 61.8% projection of 1.3993 to 1.0461 from 1.1298 at 0.9115.
