The EUR/USD has recovered from fresh cycle lows on the back of bullish diverging daily studies. The latest rebound has reclaimed the June 1st swing low at 1.2110, altering the current (elliot) wave count and has helped neutralize the gloomy short-term outlook. The rejection at the key 14-day MA average, however, leaves this pair susceptible for a bearish resumption. Losing daily RSI (9 & 14-period) trendline support will shift focus to the 2005 lows in the mid 1.16 region. Meanwhile, above the 14-day MA signals relief towards 1.2214/1.2325 (04/03 June highs).
