EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.2762; (P) 1.2791 (R1) 1.2842; More.....

EUR/USD dips sharply today but is staying above 1.2661 temporary low. Intraday bias remains neutral as consolidation from there might extend further. But still, deeper decline is still expected as long as 1.2882 resistance holds. Below 1.2661 will extend the correction from 1.3171 towards 50% retracement of 1.2042 to 1.3171 at 1.2607. On the upside, though, break of 1.2882 will indicate that such correction is likely finished and will flip bias back to the upside for 1.3138/71 resistance zone.

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.