EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2115; (P) 1.2132; (R1) 1.2150; More…

EUR/USD’s break of 1.2087 minor support argues that rebound from 1.1951 might be completed. The development also argues that the correction from 1.2348 could still be in progress. Intraday bias is turned back to the downside for 1.1951 support. On the upside, above 1.2148 will revive the bullish case and target 1.2188 and then 1.2348 high.

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.