Daily Pivots: (S1) 1.1531; (P) 1.1566 (R1) 1.1604; More…..
EUR/USD rebounds strongly today but after all, it’s staying in range of 1.1507/1851. Outlook remains unchanged. Further recovery could be seen but we’d expect strong resistance by 1.1851 to limit upside. Larger decline from 1.2555 is expected to resume sooner or later. Firm break of 1.1507 will send EUR/USD 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.