Daily Pivots: (S1) 1.4071; (P) 1.4138 (R1) 1.4210;
No change in EUR/USD's outlook. Decline from 1.4938 might have completed at 1.3969 on bullish convergence condition in 4 hours MACD. Though, we'd prefer to see decisive break of 1.4344 cluster resistance (38.2% retracement of 1.4938 to 1.3969 at 1.4339) to confirm. In such case, stronger rebound should be seen to 61.8% retracement at 1.4568 and above. On the downside, break of 1.3969 is also needed to indicate fall resumption. Otherwise, we'll stay neutral.
In the bigger picture, EUR/USD is still trading above medium term trend line support from 1.1875 (now at 1.3509) and thus, rise from there should still be in progress. We'd continue to favor the bullish case that correction from 1.6039 has completed with three waves down to 1.1875 already and. Above 1.4938 will target 1.5143 resistance first. Break will affirm the bullish case of long term up trend resumption for another high above 1.6039. However, sustained trading below the mentioned trend line support will indicate that there should at least be one more medium term decline, possibly for below 1.1875, before correction from 1.6039 completes.
