Daily Pivots: (S1) 1.1495; (P) 1.1558 (R1) 1.1590; More…..
EUR/USD drops sharply to as low as 1.1437 so far today. The strong break of 1.1507 support confirms resumption of larger down trend from 1.2555. Intraday bias is back on the downside. 50% retracement of 1.0339 to 1.2555 at 1.1447 is already met. Next target will be 61.8% at 1.1186. On the upside, break of 1.1627 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish even in case of strong recovery.
In the bigger picture, the down trend from 1.2555 medium term is in progress for 61.8% retracement of 1.0339 to 1.2555 at 1.1186. Note again that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. That carries some long term bearish implications. Sustained break of 1.1186 could pave the way back to retest 1.0339 low. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 1.1851 resistance holds.