EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1177; (P) 1.1256; (R1) 1.1297;
Intraday bias in EUR/USD remains on the downside at this point. Down trend from 1.2555 is in progress. Next target is 1.1186 fibonacci level first. Break will target 61.8% projection of 1.2555 to 1.1300 from 1.1814 at 1.1038 next. On the upside, above 1.1313 minor resistance will turn intraday bias neutral first. But recovery should be limited below 1.1499 resistance to bring fall resumption.
In the bigger picture, down trend from 1.2555 medium term top has just resumed and should target 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. On the upside, break of 1.1814 resistance is now needed to confirm medium term bottoming. Otherwise, outlook will stay bearish in case of recovery.
GBP/USD Daily Outlook
Daily Pivots: (S1) 1.2802; (P) 1.2875; (R1) 1.2922;
Intraday bias in GBP.USD remains on the downside. Current fall from 1.3174 should target 1.2661/92 key support zone. Decisive break there will resume larger down trend from 1.4376. On the upside, above 1.2946 minor resistance will turn intraday bias neutral first and bring recovery. But upside should be limited below 1.3174 resistance to bring fall resumption.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA. The structure and momentum of the fall from 1.4376 argues that it’s resuming long term down trend. And this will be the preferred case as long as 38.2% retracement of 1.4376 to 1.2661 at 1.3316 holds. However, firm break of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. And, the eventual depth of the fall from 1.4376, and the chance of hitting 1.1946 low, will depend on the strength of the interim corrective rebound from 1.2661.
