Daily pivots: (S1) 1.1546; (F) 1.1575; (R1) 1.1627; more….
EUR/USD’s extended rally and break of cluster resistance at 1.1666 (38.2% retracement level from 1.2081 to 1.1408 at 1.1665) now indicates that the entire decline from the high of 1.2081 has been completed at 1.1408. The price is also supported by a strong breakout of the 55 D EMA. The intraday bias is back to the upside of the 61.8% retracement level from 1.2081 to 1.1408 at 1.1824. A strong breakout there will pave the way for a retest of the 1.2081 high. For now, the risk will remain on the upside as long as the support at 1.1503 holds, in case of a pullback.
In the bigger picture, strong support from the 38.2% retracement level from 1.0176 to 1.2081 at 1.1353 suggests that a pullback from 1.2081 is likely a corrective move. Strong support was also found at the 55 W EMA (now at 1.1505). Focus is back on the key cluster resistance level 1.2. A decisive breakout there would have long-term bullish implications. However, breaking the support 1.1408 will revive the bearish trend reversal in the medium term.
