Despite the single currency’s fall to 1.1184 on Tuesday, subsequent strong rebound to 1.1255 yesterday on the release of upbeat services PMIs from the eurozone suggests decline from March’s peak at 1.1448 has ended there and choppy trading above March’s 20-month trough at 1.1177 would continue with upside bias, however, loss of momentum would cap price at 1.1332 and yield retreat early next week. On the downside, only below 1.1204 would indicate the said recovery is over, risk 1.1184 again, the break would extend towards said 1.1177 low.
EURUSD Intraday our preference Long positions above 1.1225 with targets at 1.1455 & 1.1570 in extension. Alternative scenario Below 1.1225 look for further downside with 1.1210 & 1.1195 as targets.