EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1616; (P) 1.1668 (R1) 1.1702; More…..

EUR/USD’s break of 1.1628 minor support suggests that rebound from 1.1507 has completed at 1.1720 already. Intraday bias is turned back to the downside for 1.1507 first. Break will resume whole fall from 1.2555 through 50% retracement of 1.0339 to 1.2555 at 1.1447 to 61.8% retracement at 1.1186. On the upside, above 1.1720 will bring another recovery. But still, upside should be limited by 1.1851 resistance to bring fall resumption eventually.

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.