EUR/USD Daily Outlook

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3013; (P) 1.3060 (R1) 1.3121; More....

EUR/USD drops sharply as the week starts and the break of 1.2910 indicates that fall from 1.3710 has resumed. intraday bias is back on the downside. As long as 1.3106 resistance holds, near term outlook will stay bearish and current fall should target 1.2661 key support level next.

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