Daily Pivots: (S1) 1.2103; (P) 1.2124; (R1) 1.2138; More

EUR/USD”s rebound from 1.1951 is still in progress and intraday bias stays on the upside for 1.2188 resistance. As noted before, corrective fall from 1.2348 should have completed with three waves down to 1.1951. Break of 1.2188 resistance will bring retest of 1.2348 high. On the downside, below 1.2053 minor support will dampen this bullish case, and turn bias to the downside to extend the correction from 1.2348 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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