EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1328; (P) 1.1358; (R1) 1.1375; More….

EUR/USD’s break of 1.1335 suggests resumption of fall from 1.1814. Intraday bias is back on the downside for 1.1300 key support level. Decisive break there will resume whole down trend from 1.2555 and target 1.1186 fibonacci level next. On the upside, however, break of 1.1421 resistance will indicate short term bottoming, with bullish convergence condition in 4 hour MACD. Intraday bias will be turned back to the upside for 1.1621 resistance instead.

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.