EUR/USD's rebound from 1.1875 extended further to as high as 1.3006 last week. The strong break of the falling trend line resistance and sustained trading above 55 days EMA suggests that fall from 1.5143 is finished at 1.1875. Initial bias will remain on the upside this week and further rise should be seen to 1.3105/3123 cluster level next (38.2% retracement of 1.5143 to 1.1875 at 1.3123, 161.8% projection of 1.1875 to 1.2466 from 1.2149 at 1.3105). Though, as such rise from 1.1875 is viewed as a correction only, upside should be limited by 1.3105/3123 cluster level and bring reversal. On the downside, below 1.2865 minor support will turn intraday bias neutral and bring consolidations. But break of 1.2522 support is needed to indicate that EUR/USD has topped. Otherwise, another rise remain in favor until meeting mentioned target.

In the bigger picture, while a medium term bottom is in place at 1.1875, there is now indicate of trend reversal yet. Rise from 1.1875 is viewed as a correction, or part of consolidation in the larger decline only. Whole fall from 1.6039 is still expected to continue to 1.1639 support and below. However, considering bullish convergence condition in weekly MACD, decisive break of mentioned 1.3105/3123 cluster level will argue that whole fall from 1.6039 might have finished totally at 1.1875 and will turn focus to 55 weeks EMA (now at 1.3475) for more evidence.

In the long term picture, considering the five wave impulsive structure of the long term up trend from 2000 low of 0.8223 to 2008 high of 1.6039, price actions from 1.6039 are viewed as a correction only. Hence, we'd expect strong support between 61.8% retracement of 0.8223 to 1.6039 at 1.1209 and 1.1639 support to contain downside and bring another long term up trend. However, note that sustained break of 1.1209 key fibonacci level will dampen this view and open up the case of a take on parity.