EUR/USD Daily Outlook
Daily Pivots: (S1) 1.2998; (P) 1.3025 (R1) 1.3072; More....
Further decline is still expected in EUR/USD with 1.3134 minor resistance. Sustained trading below 1.3 will have larger bearish implication and should send EUR/USD to next key support level at 1.2661. However, break of 1.3134 will indicate that at least a short term bottom is formed and should bring rebound back to 55 days EMA (now at 1.3192) and above.
In the bigger picture, current development mixed up the outlook in EUR/USD with major question on whether rebound from 1.2042 has completed at 1.3710. Note that as long as 1.2661 support holds, such rebound could still extend above 1.3710 to 1.4939/5143 resistance holds. However, break of 1.2661 will confirm completion of such rebound. And more importantly, the corrective three wave structure will then indicate that deeper medium term weakness would be seen for a new low below 1.2042.