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EUR/USD Mounts Cautious Recovery at Support

Ilya Spivak

EUR/USD Technical Strategy: Flat

Prices advanced as expected after putting in a Bullish Engulfing candlestick pattern. A break above the 23.6% Fibonacciexpansion at 1.2913 has exposed the 38.2% level at 1.2986, with a further push beyond that eyeing the 50% Fib at 1.3044. The 1.2913 mark has been recast as near-term support. A reversal back beneath that aims for a trend line set from mid-November 2012, now at 1.2792. Risk/reward considerations argue against entering a trade at current levels and we will stand aside for now.

Forex_Strategy_EURUSD_Mounts_Cautious_Recovery_at_Support_body_Picture_5.png, EUR/USD Mounts Cautious Recovery at Support

Daily Chart - Created Using FXCM Marketscope 2.0

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

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