EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1231; (P) 1.1299; (R1) 1.1340; More…

EUR/USD’s retreat from 1.1496 extends today but it’s staying above 1.1095 support so far. Intraday bias remains neutral and another rise is in favor. On the upside, sustained break of 1.1496 will pave the way to next fibonacci level at 1.1876. However, firm break of 1.1096 will argue that whole rebound form 1.0777 has completed. Intraday bias will be turned back to the downside for retesting 1.0777 low.

In the bigger picture, a medium term bottom should have formed at 1.0777 after drawing support from 78.6% retracement of 1.0339 (2017 low) to 1.2555 at 1.0813. Sustained break of 38.2% retracement of 1.2555 to 1.0777 at 1.1456 will raise the chance of medium term bullish reversal and target 61.8% retracement at 1.1876. Rejection by 1.1456 will suggests that price actions from 1.0777 are merely a correction. Another fall below 1.0777 low would be seen at a later stage in this case.