Daily Pivots: (S1) 1.2328; (P) 1.2397 (R1) 1.2518; More….
EUR/USD’s strong rebound and break of 1.2403 suggests that pull back from 1.2537 has completed at 1.2205, after drawing support from 1.2222 key support level. Intraday bias is back on the upside for 1.2537 resistance. Decisive break there will resume larger up trend and target 100% projection of 1.0569 to 1.2091 from 1.1553 at 1.3075. In any case, for now, as long as 1.2205 support holds, outlook will remain bullish.
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. 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. 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.
