EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3224; (P) 1.3329 (R1) 1.3387; More....

EUR/USD's fall from 1.3710 resumes and drops to as low as 1.3235 so far today, breaching mentioned 4 hours 55 EMA. Intraday bias is back on the downside and deeper decline would be seen. At this point, we're still treating such decline as a correction only and thus expect strong support from 38.2% retracement of 1.2042 to 1.3710 at 1.3073 to contain downside and bring rebound. Above 1.3433 minor resistance will turn bias back to the upside for retesting 1.3710.

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) and has completed at 1.2042 already. Rise from 1.2042 is viewed as another leg inside the consolidation pattern for the moment. But we'll pay close attention to whether EUR/USD shows sign that it's developing into a long term up trend. Meanwhile, we'll now stay medium term bullish as long as 1.3 psychological level holds.