Daily Pivots: (S1) 1.2252; (P) 1.2294 (R1) 1.2328; More….
EUR/USD recovers strongly ahead of 1.2251 support. But for now it’s staying below 1.2335 minor resistance. Intraday bias remains neutral first. Overall, with 1.2251 intact, further rise is expected in the pair. Above 1.2235 will turn bias to the upside for 1.2445 first. Break will confirm resumption of rebound form 1.2154 and target a test on 1.2555 high. But again, on the downside, firm break of 1.2251 will confirm completion of rebound from 1.2154. And intraday bias will be turned to the downside to extend the fall from 1.2555 through 1.2154.
In the bigger picture, key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 remains intact despite attempts to break. Hence, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. Rejection from 1.2516 will maintain long term bearish outlook and keep the case for retesting 1.0039 alive. Firm break of 1.1553 support will add more medium term bearishness. However, sustained break of 1.2516 will carry larger bullish implication and target 61.8% retracement of 1.6039 to 1.0339 at 1.3862.
