EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1649; (P) 1.1682 (R1) 1.1736; More…..

EUR/USD retreats after hitting 1.1720 but it’s staying above 1.1628 minor support. Outlook is unchanged that corrective rise from 1.1507 might extend higher. But upside should be limited by 1.1851 resistance to bring fall resumption eventually. On the downside, below 1.1628 will bring retest of 1.1507 first. Break will resume the whole fall from 1.2555 through 50% retracement of 1.0339 to 1.2555 at 1.1447 to 61.8% retracement at 1.1186.

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 to 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and below. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 1.1995 resistance holds.