Forex: EUR/USD Technical Analysis – Waiting to Enter Short Trade

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Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Support: 1.3800-31 (former resistance, channel floor), 1.3680 (23.6% Fib ret.)
  • Resistance: 1.3892-1.3911 (Dec 27 high, 38.2% Fib exp.), 1.3979 (channel top)

Euro technical positioning continues to hint the currency may be topping out against the US Dollar after prices showed a bearish Dark Cloud Cover candlestick pattern at resistance in the 1.3892-1.3911 area, marked by the December 27 high and the 38.2% Fibonacci expansion. Breaking below support in the 1.3800-31 region initially exposes 1.3680, the 23.6% Fib retracement. A push above 1.3911 targets a rising channel top at 1.3979. Our long-term fundamental outlook favors Euro weakness but we will opt to wait for confirmation on a daily close below channel support before triggering a short position.

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dailyclassics_eur-usd_body_Picture_12.png, Forex: EUR/USD Technical Analysis – Waiting to Enter Short Trade

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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