Daily Pivots: (S1) 1.4255; (P) 1.4350; (R1) 1.4403; More

EUR/USD rebounds strongly in early US session after all, with 1.4256 minor support intact, consolidations from 1.4217 is still in progress and another rise could still be seen. Nevertheless, upside is expected to be limited by 38.2% retracement of 1.5143 to 1.4217 at 1.4571 and bring fall resumption. Break of 1.4256 support will indicate that whole decline from 1.5143 is resuming. In such case, next target will be 38.2% retracement of 1.2329 to 1.5143 at 1.4068.

In the bigger picture, medium term rise from 1.2456 has completed at 1.5143 on bearish divergence conditions in daily MACD. Focus now turns to 1.3737 cluster support (50% retracement of 1.2329 to 1.5143 at 1.3736). Decisive break there will also confirm the case that three wave consolidation from 1.2329 has finished at 1.5134 too. In other words, whole medium term term fall from 1.6039 should be resuming for a new low below 1.2329. On the upside, above 1.5143 resistance is needed to invalidate this view. Otherwise, outlook will now remain bearish.