Daily Pivots: (S1) 1.5842; (P) 1.5913; (R1) 1.5977;
EUR/USD continues to consolidate below 1.6000 psychological resistance today. While some more sideway trading still be seen, downside should be contained above 1.5748 support and bring rally resumption. As discussed before, sustained trading above 1.6 will set the stage for rally to next short term target at 61.8% projection of 1.4437 to 1.5902 from 1.5671 at 1.6576. However, break of 1.5748 will be the first alert that a medium term top is already in place.
In the bigger picture, medium term up trend from 1.1639 is still in progress. Regardless of internal structure, it is treated as resumption of long term up trend from 0.8223 (00 low) to 1.3668 (04 high). There is no clear sign of reversal yet. Further medium term rally could still be seen towards 100% projection of 0.8223 to 1.3668 from 1.1639 at 1.7084.
Though, note that rise after triangle consolidation could be violent but short lived. A break below 1.5748 support will be an important signal that whole rally from 1.4309 might have completed. It will also raise the odds that an important medium term top is in place and bring deeper decline to below 1.5342 support.
