EUR/USD Technical Analysis– Prices advanced as expected after putting in a Bullish Engulfing candlestick pattern. The pair cleared the 100% Fibonacci expansion at 1.3293, exposing the 123.6% level at 1.3411. A further push above that aims for the 138.2% Fib at 1.3484. Early signs of negative RSI divergence warn of ebbing upward momentum however and hint a turn lower may ahead. The 1.3293 mark has been recast as near-term support, with a move back beneath that eyeing the 76.4% expansion at 1.3176.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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