EUR/USD Mid-Day Outlook

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5710; (P) 1.5774; (R1) 1.5816;
At this moment, EUR/USD is still bounded in consolidative trading inside tight range below 1.5836. With an intraday top in place, further sideway trading could be seen. Nevertheless, further rally is still in favor as long as 1.5718 minor support holds. As discussed before, at this moment, it's uncertain what form of pattern will the consolidation from 1.6019 eventually develop into. 1.5843 remains a key near term focus. Break of this resistance will add favor to the case that consolidation has already completed at 1.5302 and will bring stronger rise to retest 1.6019 record high first. On the downside, below 1.5718 minor support will flip intraday bias back tot he downside for 1.5468 support first. Break will confirm that EUR/USD has started the final leg of triangle towards 1.5302 support to complete the consolidation from 1.6019.
In the bigger picture, a medium term top is in place at 1.6019 after meeting 1.6 psychological resistance. Subsequent sideway consolidation should be close to completion, it not finished already. As mentioned above, above 1.5843 will indicate that such consolidation has completed. Further decisive break of 1.6019 will confirm this case and bring rise to 61.8% projection of 1.4309 to 1.6019 from 1.5284 at 1.6341 first. On the downside, while another setback could still be seen before completing the consolidation, downside should be contained above 1.5302 support. Break of this support level is needed to switch to the case that price actions from 1.6019 are developing into deep correction to test 1.4966 cluster support. MORE