EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2025; (P) 1.2045; (R1) 1.2071; More…

Intraday bias in EUR/USD remains on the upside at this point. Corrective fall from 1.2348 should have completed with three waves down to 1.1951. Break of 1.2188 resistance will bring retest of 1.2348 high. On the downside, though, break of 1.1951 support will resume the correction instead.

In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. We’d be alerted to topping sign around 1.2516/55. But sustained break there will carry long term bullish implications.