Daily Pivots: (S1) 1.2124; (P) 1.2173; (R1) 1.2207; More

Intraday bias in EUR/USD remains neutral and outlook is unchanged. With 1.2244 minor resistance intact, another fall could still be seen as consolidation from 1.2348 extends. But downside should be contained by 1.2058 cluster support (38.2% retracement of 1.1602 to 1.2348 at 1.2063) to bring rebound. Meanwhile, on the upside, break of 1.2244 minor resistance will bring retest of 1.2348.

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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