EUR/USD’s Bearish Prognosis

Pair’s trading tone is neutral. Prognosis remains bearish and larger decrease is expected if 1.1689 resistance is present. Under 1.1553 the intact decline from 1.2091 will expand and align 38.2% retracement of 1.0569 to 1.2091 at 1.1510. Following pivot points include: (S1) 1.1584; (P) 1.1631 (R1) 1.1708.

Sustained support should lead to recoil. Decisive breach of 1.1510 will head towards another support zone of 1.1118/1267. Breach of 1.1689 resistance will suggest near term bottoming and trading will turn up on the upside towards 1.1836 resistance.

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.