EUR/USD Daily Outlook

Intraday bias in EUR/USD remains neutral for the moment. Overall we’re holding on to the view that a short term bottom is formed at 1.3502 on bullish divergence condition is seen in 4 hours MACD. Further rise is expected and above 1.3676 will target 55 days EMA (now at 1.3720) and above. Also, as 1.3476 support remains intact, there is no confirmation of reversal and retest of 1.3993 high could be seen. Meanwhile, break of 1.3476 will confirm resumption of whole fall from 1.3993 and would turn near term outlook bearish.

In the bigger picture, overall price actions from 1.6039 is view

ed as a corrective pattern. The choppy rise from 1.2042 is seen as a leg inside the pattern. Bearish divergence condition in daily and weekly MACD raises the chance 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.