EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1562; (P) 1.1586 (R1) 1.1622; More…..

EUR/USD faced some resistance from 4 hour 55 EMA and retreated. But for now, further rise is in favor. Rebound from 1.1529 is seen as another leg inside the consolidation pattern from 1.1509. Further rise could be seen towards 1.1745 resistance. But even in case of stronger than expected rebound, upside should be limited by 1.1851 to bring down trend resumption eventually. On the downside, decisive break of 1.1507 key support will resume larger down trend from 1.2555 through 50% retracement of 1.0339 to 1.2555 at 1.1447.

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.