EUR/USD Daily Outlook

The consolidation from 1.3905 temporary top is still in progress and intraday bias stays neutral. We’d holding on to the bullish view that rise from 1.3673 is resuming the larger rally from 1.2755. Above 1.3905 will target 1.3966 first. Break will target 100% projection of 1.3476 to 1.3966 from 1.3673 at 1.4163. However, break of 1.3779 minor support will dampen this bullish view and turn bias back to the downside for 1.3673 support instead.

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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 . Such rally is having a corrective look and upside momentum is not too convincing. Thus, while further rise should be seen in medium term, we’d expect strong resistance from 100% projection of 1.2042 to 1.3710 from 1.2755 at 1.4423 to limit upside and bring reversal. Nonetheless, break of 1.3476 support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.

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