EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1721; (P) 1.1762; (R1) 1.1792;
Intraday bias in EUR/USD remains neutral at this point. We we maintain our view that 38.2% retracement of 1.2555 to 1.1300 at 1.1779 should limit upside, at least on first attempt, to bring near term reversal. On the downside, break of 1.1649 minor support will be the first signal that corrective rise from 1.1300 has completed. Intraday bias will be turned to the downside for 1.1525 support first. Break will confirm and bring retest of 1.1300 low. However, sustained break of 1.1779 will extend the corrective rise from 1.1300 to 100% projection of 1.1300 to 1.1733 from 1.1525 at 1.1958 before completion.
In the bigger picture, a medium term bottom should be in place at 1.1300, on bullish convergence condition in daily MACD and some consolidations would be seen. But still, note that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. That carries some long term bearish implications. Thus, we’d expect fall from 1.2555 high to resume after consolidation completes. Below 1.1300 should send EUR/USD through 61.8% retracement of 1.0339 to 1.2555 at 1.1186. And, in that case, EUR/USD would head to retest 1.0339 (2017 low).
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1217; (P) 1.1264; (R1) 1.1306;
Intraday bias in EUR/CHF remains neutral as range trading continues. In case of another fall, we’d continue to expect strong support from key support zone of 1.1154/98 to bring reversal. On the upside, break of 1.1342 will reaffirm the case of bullish reversal and target 1.1452 resistance for confirmation. However, sustained break of 1.1154/98 will carry larger bearish implications.
In the bigger picture, for now, the price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1207) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
