EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0905; (P) 1.1047; (R1) 1.1139; More…

EUR/USD’s fall from 1.1496 continues today and reaches as low as 1.0894 so far. Intraday bias remains on the downside for retesting 1.0777 low. On the upside, above 1.1045 minor resistance will turn intraday bias neutral and bring consolidations first. At this point, there is no clear sign of downside breakout yet. Corrective pattern from 1.0777 could still extend for a while.

In the bigger picture, rebound from 1.0777 low faced heavy rejection from 38.2% retracement of 1.2555 to 1.0777 at 1.1456, as well as 55 month EMA. The development argues that price actions from 1.0777 medium term pattern are just corrective the down trend from 1.2555 (2018 high). Further decline is in favor to retest 1.0339 (2017 low). Nevertheless, sustained break of 1.1456 will raise the chance of medium term bullish reversal and target 61.8% retracement at 1.1876.