Daily Pivots: (S1) 1.1739; (P) 1.1782 (R1) 1.1814; More….
EUR/USD recovers after dipping to 1.1716 but intraday bias remains on the downside. Sustained break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will target 50% retracement at 1.1447 next. However, considering possible bullish convergence condition in 4 hour MACD, break of 1.1821 minor resistance will suggest short term bottoming and bring stronger rebound back to 1.1995 resistance.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further. Break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will pave the way to 61.8% retracement at 1.1186. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2113) holds.
