EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3437; (P) 1.3466 (R1) 1.3520; More.....

Intraday bias in EUR/USD remains on the upside with 1.3414 minor support intact. Sustained trading above 1.3486 key resistance level will have larger bullish implication and will extend whole rally from 1.2661 to 100% projection of 1.2042 to 1.3171 from 1.2661 at 1.3790. Note that break of 1.3414 will be a warning on near term topping, possibly on bearish divergence condition in 4 hours MACD. And, in that case, bias will be back to the downside for a test on 1.3264 near term support level.

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 1.2661 support holds.