Daily Pivots: (S1) 1.2140; (P) 1.2191; (R1) 1.2227; More

Intraday bias in EUR/USD is turned neutral with the deep retreat from 1.2242. Further rise is mildly in favor as long as 1.2108 minor support holds. Above 1.2242 will target 1.2348 high. Decisive break there will resume larger up trend from 1.0635, to 1.2555 key cluster resistance. On the downside, though, break of 1.2108 support will dampen the bullish view and turn bias to the downside for 1.2022 support 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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