EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1762; (P) 1.1784; (R1) 1.1815; More…

EUR/USD is still losing downside momentum, as displayed in 4 hour MACD. Nevertheless, further decline is expected with 1.1880 resistance intact. Current fall from from 1.2265, as the third leg of correction from 1.2348, would target 1.1703 support. On the upside, though, break of 1.1880 will indicate short term bottoming and turn bias back to the upside for stronger rebound to 1.1974 resistance first.

In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. Reaction from 1.2555 should reveal underlying long term momentum in the pair. However sustained break of 1.1602 will argue that the rise from 1.0635 is over, and turn medium term outlook bearish again.

July 23, 2021 at 01:17AM
ActionForex.com
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