EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1630; (P) 1.1656 (R1) 1.1683; More…..

EUR/USD rebounds to as high as 1.1719 so far today. With support from 4 hour 55 EMA, further recovery could be seen. But still it’s seen as in a consolidation pattern from 1.1507. Hence upside should be limited by 1.1851 resistance to bring fall resumption eventually. The larger decline from 1.2555 is expected to resume sooner or later. Firm break of 1.1507 will target 50% retracement of 1.0339 to 1.2555 at 1.1447 and then 61.8% retracement at 1.1186.

In the bigger picture, 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.