EUR/USD Mid-Day Outlook

EUR/USD is still staying below 1.3676 resistance and intraday bias remains neutral. We continue to favor that a short term bottomed is formed at 1.3502 and expect another rise. Above 1.3676 will target 1.3993 resistance and break will extend the medium term up trend. However, below 1.3502 will turn focus to 1.3476 key support. Sustained break of 1.3476 will signal medium term reversal and carry bearish implications.

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. 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 won’t turn bullish even in case of strong rebound.

This Article Wrote For By Fxstay

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