Forex: EUR/USD Technical Analysis – Key Channel Floor Breached

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Talking Points:

  • EUR/USD Technical Strategy: Pending Short
  • Support: 1.3779 (38.2% Fib ret.), 1.3721 (50% Fib ret.)
  • Resistance: 1.3808 (channel bottom), 1.3850 (23.6% Fib ret.)

The Euro moved lower as expected against the US Dollar, with prices pushing through rising channel support set from early February. The currency pair now finds itself squarely at the 38.2% Fibonacci retracement at 1.3779 however, tipping risk/reward considerations against entering short in line with our long-term fundamental outlook. We will continue to stand on the sidelines for the time being, looking for a more attractive setup to emerge. A breach downward initially exposes the 50% level at 1.3721. Alternatively a move back above the channel top (1.3808) aims for the 23.6% Fib at 1.3850.

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dailyclassics_eur-usd_body_Picture_12.png, Forex: EUR/USD Technical Analysis – Key Channel Floor Breached

Daily Chart - Created Using FXCM Marketscope 2.0

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

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