Daily Pivots: (S1) 0.6994; (P) 0.7035; (R1) 0.7068; More…

Immediate focus is now on 0.7005 support. Decisive break there will confirm resumption of whole corrective fall from 0.7413. Intraday bias will be turned to the downside or 38.2% retracement of 0.5506 to 0.7413 at 0.6685. In any case, near term outlook will stays cautiously bearish as long as 0.7157 resistance holds.

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In the bigger picture, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a correction inside the long term down trend. Sustained trading back below 55 week EMA (now at 0.6916) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise from 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.

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