EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1820; (P) 1.1839; (R1) 1.1849; More…

EUR/USD drops sharply in early US session and immediate focus is now on 1.1751 support. Break will resume the whole fall from 12265, as the third leg of the pattern from 1.2348, to 1.1703 support, or even further to 1.1602. On the upside, above 1.1907 will resume the rebound from 1.1751 to 1.1974 resistance.

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.

August 07, 2021 at 01:05AM
ActionForex.com
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