Daily Pivots: (S1) 1.1595; (P) 1.1611; (R1) 1.1634; More…..
EUR/USD drops further to as low as 1.1529 and focus is on 1.1529 support. Firm break there will indicate e completion of the corrective rebound and turn bias to the downside for retesting 1.1300 low. Decisive break there will resume larger down trend from 1.2555. On the upside, above 1.1627 minor resistance will turn bias back to the upside for 1.1733 and possibly above. But in that case, we’d continue to expect strong resistance from 38.2% retracement of 1.2555 to 1.1300 at 1.1779 to limit upside, at least on first attempt, to bring near term reversal.
In the bigger picture, a medium term bottom should be in place at 1.1300, on bullish convergence condition in daily MACD and some consolidations would be seen. But still, note 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. Thus, we’d expect fall from 1.2555 high to resume after consolidation completes. Below 1.1300 should send EUR/USD through 61.8% retracement of 1.0339 to 1.2555 at 1.1186. And, in that case, EUR/USD would head to retest 1.0339 (2017 low).