EUR/USD Daily Outlook
EUR/USD dips through 1.2647 temporary low and intraday bias is back on the downside. Recent development suggests that the larger up trend has completed at 1.3993 on bearish divergence condition in daily MACD, with break of channel support. Further fall should be seen to 1.3476 key support level for confirmation of this bearish case. On the upside, above 1.3733 resistance will indicate short term bottoming and bring consolidations first.
In the bigger picture, overall price actions from 1.6039 is viewed as a corrective pattern. The choppy rise from 1.2042 is seen as a leg inside the pattern. Current development, with a break of the medium term channel, and bearish divergence condition in daily and weekly MACD, raises the change that this leg is finished at 1.3993 already. Break of 1.3476 support will confirm this bearish case and should target 1.2755 and below. Meanwhile, break of 1.3993 is needed to confirm rally resumption. Otherwise, we wont’ turn bullish even in case of strong rebound.
Source: AF
