Dynamic Of EUR/USD's Consolidation
Pair’s trading is still neutral. The consolidation is progressing under the short term top of 1.1733. Another increase is expected. Following pivot points include: (S1) 1.1668; (P) 1.1690; (R1) 1.1728.
Sustained resistance from 38.2% retracement of 1.2555 to 1.1300 at 1.1779 should bound upside and cause a short term trend reversal. Breach of 1.1529 minor will confirm conclusion of the recoil. In that case, trading will turn up on the downside to repeat test of 1.1300 minimum. Consolidation from 1.1300 will prolong further but soon it will be over.
According to bullish convergence in daily MACD, a medium term bottom should be formed at 1.1300 and some consolidations should occur in near term. There has been a rejection from 38.2% retracement of 1.6039 to 1.0339 at 1.2516, which suggests long term bearish sentiment. Decline from the maximum of 1.2555 should extend after ending of consolidation. Under 1.1300, EUR/USD will surpass 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and repeat test of 1.0339 will be aligned.