EUR/USD’s fall from 1.1848 continues today and intraday bias remains on the downside. Further decline should be seen to retest 1.1408 low first. For now, risk will stay on the downside as long as 1.1685 resistance holds, in case of recovery.
In the bigger picture, the strong support from 38.2% retracement of 1.0176 to 1.2081 at 1.1353 suggests that the pullback from 1.2081 is more likely a corrective move. Strong support was also found in 55 W EMA (now at 1.1547). Focus is back on 1.2 key cluster resistance level. Decisive break there will carry long term bullish implications. Nevertheless, break of 1.1408 support will revive the case of medium term bearish trend reversal.
