Daily Pivots: (S1) 1.3200; (P) 1.3296; (R1) 1.3466; More

EUR/USD retreats again again rebound from 1.3089 was limited at 1.3391. But after all, short term outlook remains unchanged. The corrective look of the fall from 1.3737 to 1.3089 argues that it's merely consolidation to rise from 1.2456 only. Break of 1.3580 will suggest that such rise is resuming for 1.3822 (61.8% retracement of 1.4719 to 1.2456 at 1.3855). On the downside, below 1.3089 will turn focus back to 61.8% retracement of 1.2456 to 1.3737 at 1.2945. Break there will indicate that whole rise from 1.2456 has completed and should then turn short term outlook bearish for retesting this low.

In the bigger picture, recent development suggests that EUR/USD is still bounded in sideway consolidation that started at 1.2329, with rise from 1.2456 as the third leg. At this moment, there is no sign that such rise from 1.2456 has completed and we're still slightly favoring the case for it to extend to 1.4719 or above. But even in such case, upside should be limited by 1.4867 resistance and bring down trend resumption. On the downside, below 1.2945/55 support will indicate that rise from 1.2456 has completed earlier than we thought and will put focus back to 1.2329/2456 support zone.