Daily Pivots: (S1) 1.1934; (P) 1.2001; (R1) 1.2039; More

Intraday bias in EUR/USD is back on the downside as fall from 1.2442 resumes. Such decline is third leg of the corrective pattern from 1.2348. Break of 1.1951 will target 100% projection of 1.2348 to 1.1951 from 1.2242 at 1.1845. We’d look for bottoming signal there. But break of 1.2112 minor resistance is needed to signal short term bottoming. Meanwhile, firm break of 1.1845 will extend the correction to 38.2% retracement of 1.0635 to 1.2348 at 1.1694.

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.

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