EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3450; (P) 1.3478 (R1) 1.3523; More....

Intraday bias in EUR/USD remains neutral for some more consolidation. But again, with 1.3547 resistance intact, near term outlook stays mildly bearish. Below 1.3294 will target 1.3104. Current development argues that whole rally from 1.2042 might be finished and break of 1.3104 will affirm this case and target 1.2755 and below. However, break of 1.3547 will mix up the near term outlook and turn bias back to the upside for recovery.

In the bigger picture, overall price actions from 1.6039 is viewed as a corrective pattern which is still in progress. Rebound from 1.2042 has likely completed at 1.3832 already. Break of 1.2755 will confirm this case and EUR/USD will re-target 1.1875/2042 support zone again. At this point, we're not being too bearish yet and don't expect a break of 1.1875/2042 support zone. But, we'll pay attention to how the current decline development on assessing the chance of a break through 1.1875.