Forex: EUR/USD Technical Analysis – Short Trade Setup Sought
To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
EUR/USD Technical Strategy: Pending Short
Support: 1.3779 (38.2% Fib ret.), 1.3721 (50% Fib ret.)
Resistance: 1.3842-50 (23.6% Fib ret., channel floor)
The Euro fell against the US Dollar as expected but we opted not to enter shortin line with our long-term fundamental outlook amid conflicted technical positioning.This proved prudent: prices edged above the 38.2% Fibonacci retracement at 1.3779, exposing the 1.3842-50 region marked by a recently broken falling channel bottom and the 23.6% level. A daily close above this boundary threatens to open the door for a move above the 1.39 figure. Alternatively, a move back below 1.3779 targets the 50% Fib at 1.3721. We will continue to stand aside for now, looking for a retest of the channel bottom to produce a short trade opportunity.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
