Trend Reversal In EUR/USD Is Expected
Trading is neutral and a near term trend reversal is widely expected. Upside should be bounded by 38.2% retracement of 1.2555 to 1.1300 at 1.1779. Pivot points are at: (S1) 1.1721; (P) 1.1762; (R1) 1.1792.
Break of 1.1779 will widen the corrective growth from 1.1300 to 100% projection of 1.1300 to 1.1733 from 1.1525 at 1.1958. Break of minor support 1.1649 will indicate completion of the corrective rise from 1.1300. In that case, trading will back to the downside for support 1.1525.
The pair was rejected by 38.2% retracement of 1.6039 to 1.0339 at 1.2516, but a medium term bottom should be in place at 1.1300, on bullish convergence condition in daily MACD. Consolidation is awaited. The decline from high 1.2555 will renew after consolidation completes. Trading below 1.1300 should send the pair through 61.8% retracement of 1.0339 to 1.2555 at 1.1186.