EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0311; (P) 1.0373; (R1) 1.0478; More...

At the mid-day point, the intraday bias for the EUR/USD currency pair remains neutral. The current resistance level at 1.0435 continues to hold, suggesting a possibility of another decline. If the price breaks below the support level at 1.0176, it would indicate a continuation of the downward trend that started from 1.1213.

On the other hand, if there is a decisive break above the 1.0435 resistance, it could signal that the short-term downward trend has reached a bottom, potentially leading to a stronger rebound. The next target for recovery in this scenario would be the 38.2% retracement level, which is located at 1.0572.

Broader Market Scenario

Looking at the larger picture, the recent decline from the high of 1.1274 in 2023 might represent either the second leg of a corrective pattern from the low of 0.9534 observed in 2022, or it may signify another downward leg in the longer-term bearish trend. In both of these cases, a sustained break of the 61.8% retracement level (1.0199) would open up the possibility of further declines towards 0.9534.

For the time being, the outlook remains bearish as long as the resistance at 1.0629 remains unbroken. Even in the event of a strong rebound, the overall sentiment would likely stay negative.

EUR/USD, Outlook, Market