Forex: EUR/USD Mid-Day Outlook

EUR/USD dips further today but is still holding above 1.2435 minor support and intraday bias remains neutral. With 1.2435 intact, corrective rebound from 1.2287 could still extend higher. Above 1.2530 minor resistance will flip bias back to the upside for 1.2747 and then 61.8% retracement of 1.3282 to 1.2287 at 1.2902. Though, break of 1.2435 will indicate that such corrective rise is already completed and will flip bias back to the downside for 1.2287 and below.
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 could extend to 1.1875 low and below. In that case, though, strong support is expected from 1.1639/1875 support zone to contain downside and bring rebound. After all, such consolidation would extend further inside range of 1.1639/6039 for some more time. On the upside, break of 1.3486 resistance is needed to indicate completion of fall from 1.4939. Otherwise, outlook will stay bearish even in case of strong rebound.

Daily Pivots: (S1) 1.2463; (P) 1.2511 (R1) 1.2551

 

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