Forex: EUR/USD Technical Analysis – Critical Double Top in Play
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Talking Points:
EUR/USD Technical Strategy: Flat
Support:1.3766 (trend line), 1.3642 (Feb 27 low)
Resistance: 1.3800-31 (double top), 1.3892 (Dec 27 high)
The Euro broke above resistance at a falling trend line set from late October to challenge a familiar double top in the 1.3800-31 area against the US Dollar. A further push higher from here targets the December 27 high at 1.3892. The trend line – now at 1.3766 – has been recast as support, with a reversal back beneath that eyeing the February 27 low at 1.3642.
A long trade looks unattractive from a risk/reward perspective while a short position in line with our long-term fundamental outlook lacks confirmation of reversal. As such, we will stand aside for now waiting for another entry point after our previous attempt to sell the pair was stopped out at breakeven.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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