Daily Pivots: (S1) 1.2236; (P) 1.2285 (R1) 1.2318; More….
EUR/USD’s decline continues today and breaches 1.2238 support. Intraday bias remains on the downside for 1.2154 support level. Decisive break there should confirm the rejection by 1.2516 key fibonacci resistance and pave the way to 38.2% retracement of 1.0339 to 1.2555 at 1.1708. On the upside, above 1.2314 minor resistance will mix up the outlook and turn intraday bias neutral first.
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 in medium term.