EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3021; (P) 1.3052 (R1) 1.3089;

No change in EUR/USD's outlook as consolidation from 1.3171 should extend further. Fall from 1.3138 would continue to 1.2825 and possibly below. But, downside should be contained by 50% retracement of 1.2255 to 1.3171 at 1.2713 to conclude the consolidation and bring rebound. On the upside, sustained break of 1.3171 will confirm that rise from 1.2042 has finally resumed and should target 1.3486 key resistance, which is close to 50% retracement of 1.4939 to 1.2042 at 1.3491.

In the bigger picture, fall from 1.4939 is treated as a falling leg inside the consolidation pattern that started at 1.6039 (2008 high). Such decline should have completed at 1.2042 already. Break of 1.3486 will confirm and should pave the way to 1.5 psychological level in medium term. We'd now stay bullish as long as 1.25 psychological level holds.