Bearish Implications In EUR/USD
Pair’s trading stays on the upside to 1.1733 resistance and higher. Firm resistance from 38.2% retracement of 1.2555 to 1.1300 at 1.1779 should bound upside. Breach of 1.1608 minor support will push trading to the downside to 1.1525 support. Following pivot points include: (S1) 1.1632; (P) 1.1667; (R1) 1.1725.
Breach will confirm conclusion of the intact recoil from 1.1300. Strong breach of 1.1779 will resume the lift for 100% projection of 1.1300 to 1.1733 from 1.1525 at 1.1958.
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.