EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1526; (P) 1.1569; (R1) 1.1602; More…..

EUR/USD rebounds notably after drawing support from 1.1534 minor support. But it’s staying below 1.1610 temporary top. Intraday bias remains neutral first. ON the upside, break of 1.1610 will extend the rebound from 1.1431 towards 1.1814 resistance. But we’d expect upside to be limited by 1.1779/1814 resistance zone to bring down trend resumption eventually. On the downside, break of 1.1534 will indicate completion of rebound from 1.1431. Intraday bias will be turned back to the downside for 1.1431 and then 1.1300 low.

In the bigger picture, corrective pattern from 1.1300 could have completed at 1.1814 after hitting 38.2% retracement of 1.2555 to 1.1300 at 1.1779. Decisive break of 1.1300 will resume the down trend from 1.2555 to 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. On the upside, break of 1.1814 will delay the bearish case and extend the correction from 1.1300 with another rise before completion.