EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1703; (P) 1.1731; (R1) 1.1759; More….

Intraday bias in EUR/USD is turned neutral with a temporary low firmed at 1.1703, just ahead of 38.2% retracement of 1.0635 to 1.2348 at 1.1694. In case of another fall, we’d expect strong support from 1.1602 to contain downside to complete the whole correction from 1.2348. On the upside, above 1.1804 minor resistance will turn bias back to the upside for rebound to 1.1988 resistance.

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. However, sustained break of 1.1602 will argue that whole rise from 1.10635 has completed. Deeper fall would be seen to 61.8% retracement of 1.0635 to 1.2348 at 1.1289.