Daily Pivots: (S1) 1.2025; (P) 1.2045; (R1) 1.2071; More

EUR/USD’s break of 1.2052 support turned resistance suggests that corrective fall from 1.2348 has already completed with three waves down to 1.1951. Intraday bias is back on the upside for 1.2188 resistance first. Break will likely bring further rally through 1.2348 high, to resume the up trend from 1.0635. On the downside, though, break of 1.1951 support will resume the correction instead.

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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