We don’t necessarily believe that the market will be over to break above the 1.13 handle in the short-term. This is one of our least favorite markets at the moment.
EURUSD is holding steady just ahead of the 55 day ma at 1.1094. Our attention remains on the base of the cloud circa 1.1021. This guards the base of the channel at 1.0904. Near term rallies should now struggle and ideally be contained by 1.1332.
We suspect dips lower will find initial support at 1.1255, but only below the 55 day ma at 1.1106 would trigger a slide to the base of the cloud circa 1.0996 and the base of the channel at 1.0925.
Intraday bias in EUR/USD remains neutral for the moment. With 1.1213 minor support intact, further rise is mildly in favor in the pair. Above 1.1459 will target 1.1713 resistance and above. In that case, we'd expect strong resistance from 38.2% retracement of 1.3993 to 1.0461 at 1.1810 to limit upside to complete the correction 1.0461. Meanwhile, below 1.1213 minor support will turn bias to the downside for 1.1086 support.
