Daily Pivots: (S1) 1.2159; (P) 1.2206; (R1) 1.2282; More….
EUR/USD is staying in consolidation from 1.2272 and intraday bias remains neutral. On the upside, break of 1.2272 will resume larger rally to 61.8% projection of 1.0635 to 1.2011 from 1.1602 at 1.2452 next. However, considering bearish divergence condition in 4 hour MACD, break of 1.2058 will bring deeper 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.