[m.youssif]

EUR/USD's break of 1.4251 minor support suggests that a temporary top is formed at 1.4348 and the pair would now retreat towards 4 hours 55 EMA (now at 1.4194). Nevertheless, downside is expected to be contained above 1.4020 support and bring rise resumption. Above 1.4348 should target 100% projection of 1.2873 to 1.386 from 1.3427 at 1.4414. however, break of 1.4020 will indicate that a short term top is formed with bearish divergence condition in 4 hours MACD. In such case, deeper pull back would be seen towards 1.3427/3860 support zone instead.

In the bigger picture, the break of 1.4281 resistance firstly confirms that whole medium term rebound from 1.1875 has resumed. Further rise should now be seen towards 100% projection of 1.1875 to 1.418 from 1.2873 at 1.5279. Also, note that current development also affirms the case that medium term correction 1.6039 was completed with three waves down to 1.1875 and the long term up trend might be resuming. Decisive break of 1.5279 projection target will indicate that rise from 1.1875 is developing into and impulsive wave that should take out 1.6039 high. On the downside, break of 1.3427 support is needed to invalidate this view. Otherwise, outlook will remain bullish.

[m.youssif]

EUR/USD's break of 1.4251 minor support suggests that a temporary top is formed at 1.4348 and the pair would now retreat towards 4 hours 55 EMA (now at 1.4194). Nevertheless, downside is expected to be contained above 1.4020 support and bring rise resumption. Above 1.4348 should target 100% projection of 1.2873 to 1.386 from 1.3427 at 1.4414. however, break of 1.4020 will indicate that a short term top is formed with bearish divergence condition in 4 hours MACD. In such case, deeper pull back would be seen towards 1.3427/3860 support zone instead.

In the bigger picture, the break of 1.4281 resistance firstly confirms that whole medium term rebound from 1.1875 has resumed. Further rise should now be seen towards 100% projection of 1.1875 to 1.418 from 1.2873 at 1.5279. Also, note that current development also affirms the case that medium term correction 1.6039 was completed with three waves down to 1.1875 and the long term up trend might be resuming. Decisive break of 1.5279 projection target will indicate that rise from 1.1875 is developing into and impulsive wave that should take out 1.6039 high. On the downside, break of 1.3427 support is needed to invalidate this view. Otherwise, outlook will remain bullish.