Daily Pivots: (S1) 1.1822; (P) 1.1839 (R1) 1.1865; More….
Break of 1.1860 resistance indicates that EUR/USD’s rally from 1.1553 has completed. Intraday is back on the upside for retesting 1.2091 high. Decisive break there will resume medium term rally from 1.0339. On the downside, break of 1.1712 support is needed to indicate completion of the rebound. Otherwise, outlook will stay bullish in case of retreat.
In the bigger picture, rise from 1.0339 medium term bottom is seen as a corrective move for the moment. Therefore, in case of another rally, we’d be cautious on 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 to limit upside and bring reversal. Meanwhile, sustained trading below 55 week EMA (now at 1.1373) will suggest that such medium term rebound is completed and could then bring retest of 1.0339 low.
