Near Term Bottoming in EUR/USD

Pair’s trading tone is neutral. Drop from 1.2091 is expanding towards 38.2% retracement of 1.0569 to 1.2091 at 1.1510 if the whole 1.1689 resistance is present. Following pivot points include: (S1) 1.1598; (P) 1.1626 (R1) 1.1668.

Decisive support should lead to recoil. Firm breach of 1.1510 will head towards another support region of 1.1118/1267. Breach of 1.1689 resistance will suggest near term bottoming. If EUR/USD recovers, prognosis will remain bearish.

The lift from a medium term bottom of 1.0339 is a corrective. If further rally occurs, 38.2% retracement of 1.6039 to 1.0339 at 1.2516 will bound upside and cause reversal. Stable trading under 55 week EMA will confirm that the medium term recoil has finished. The repeat test of 1.0339 minimum is possible.