EUR/USD’s Key Support Was Broken

Technical Reports

The pair has broken a key support of 1.222 but the upside impulse is so far weak. Bottom formation hasn’t been confirmed yet. Trading stays on the downside. Basing on bearish divergence in 4 hour MACD, firm breach of 1.2222 should indicate rejection from the key fibonacci level of 1.2494/2516 and a short term reversal. Following pivot points include: (S1) 1.2207; (P) 1.2250 (R1) 1.2290.

Medium term uptrend from 1.0339 will soon be finished and if that happens, short term forecast will become bearish for 1.2091 resistance turned support. Over 1.2403 minor resistance, the bullish sentiment will be boosted and 1.2537 level will be aligned.

Lift from the medium term bottom of 1.0339 has a corrective nature. Firm breach of 1.2516 will suggest bullishness and align 38.2% retracement of 1.6039 to 1.0339 at 1.3862. Rejection from 1.2516 will boost long term bearish prognosis and suggest repeat test of 1.0039 level.