Daily Pivots: (S1) 1.0764; (P) 1.0791 (R1) 1.0823; More…..
EUR/USD’s rally accelerates to as high as 1.0895 so far and intraday bias remains on the upside. Current rise is expected to target 100% projection of 1.0339 to 1.0828 from 1.0494 at 1.0983. At this point, we’re still treating rise from 1.0339 as a correction. Hence, we’d expect strong resistance from 1.0983 to limit upside and bring near term reversal. On the downside, break of 1.0760 support will turn bias back to the downside for 1.0494 support. However, firm break of 1.0983 will dampen our view and put focus on 1.1298 key resistance.
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. However, considering bullish convergence condition in weekly MACD, break of 1.1298 will indicate term reversal. this would also be supported by sustained trading above 55 week EMA.