EUR/USD’s Sharp Recoil
The pair has sharply recoiled after hitting support from 4 hour 55 EMA and now it’s holding under 1.1960. Trading stays neutral. Increase from 1.1553 would expand if the whole 1.1712 support stands. Breach of 1.1960 will push trading to the upside towards a repeat test of 1.2091 maximum. Following pivot points include: (S1) 1.1830; (P) 1.1881 (R1) 1.1953.
Breach will prolong medium term uptrend from 1.0339 and head towards 61.8% projection of 1.0569 to 1.2091 from 1.1553 at 1.2494 around long term fibonacci level of 1.2516. Firm resistance should lead to reversal. Breach of 1.1712 support should confirm ending of increase from 1.1553 and make prognosis 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.