EUR/USD Daily Outlook Apr 24 14:34 GMT
Daily Pivots: (S1) 1.5832; (P) 1.5918; (R1) 1.5974;
EUR/USD’s decline from 1.6019 extends further to as low as 1.5675 today. Break of 1.5710 confirms that diagonal triangle that started at 1.5342 should have already completed at 1.6019, after failing to sustain above 1.6 psychological resistance. At this point, intraday bias remains on the downside as long as 1.5773 minor resistance holds. While some consolidation could be seen in case EUR/USD recovers to above 1.5573, upside should be limited by 4 hours 55 EMA (now at 1.5848) and bring fall resumption to 1.5342 support.
In the bigger picture, completion of the diagonal triangle also argues that whole rally from 1.4309 has completed with five waves up to 1.6019. Focus is now on 1.5342 support. Sustained break of 1.5342 will also have 55 days EMA (now at 1.5475) taken out too. That will be another sign of a medium term top and in such case, will encourage deeper decline to 1.4309/4966 support zone. On the upside, as sustained trading above 1.6000 is now needed to confirm that medium term up trend is still in progress.