EURUSD Outlook | Written by ActionForex.com | Aug 20 14 05:54 GMT
Daily Pivots: (S1) 1.3300; (P) 1.3332 (R1) 1.3350; More....
EUR/USD's fall continues today and reaches as low as 1.3302 so far today and intraday bias remains on the downside. Current decline should target 100% projection of 1.3993 to 1.3502 from 1.3700 at 1.3209 next. As downside momentum is not too convincing, we'd probably seen strong support from 1.3209 to bring lengthier consolidation. On the upside, break of 1.3411 is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, overall price actions from 1.6039 is viewed as a corrective pattern. One interpretation is that fall from 1.6039 to 1.2329 was the first leg. Price actions from 1.2329 were the second leg, in form of a triangle. In such view, the fifth leg of the triangle pattern could have completed at 1.3993 already. In other words, the decline from 1.3993 is resuming the fall from 1.16039. Medium term outlook will now stay cautiously bearish as long as 1.3700 resistance holds. Break of 1.2755 key support level will raise the chance of an eventual break of 1.1875 low.
