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Forex: EUR/USD Technical Analysis – 5-Month Trend Line Retested

By , Currency Strategist
07 February 2014 08:49 GMT

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Talking Points:

  • EUR/USD Technical Strategy: Short at 1.3757
  • Support: 1.3574 (23.6% Fib ret.), 1.3537 (14.6% Fib ret.)
  • Resistance: 1.3595 (trend line), 1.3635 (38.2% Fib ret.)

We remain short EUR/USD at 1.3757 in line with our long-term fundamental outlook. A Shooting Star candle marked downward resumption as expected after following a corrective rebound. The trade’s first objective is at 1.3209. A stop-loss is set to trigger on a daily close above the January 24 high at 1.3738.

Prices bounced from falling channel support to retest rising trend line support-turned-resistance set from September, now at 1.3595. A break above this barrier exposes the 38.2% Fibonacci retracement at 1.3635. Alternatively, a close below the 23.6% Fib at 1.3574 aims for the 14.6% level at 1.3537.

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dailyclassics_eur-usd_body_Picture_12.png, Forex: EUR/USD Technical Analysis – 5-Month Trend Line Retested

Daily Chart - Created Using FXCM Marketscope 2.0

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

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07 February 2014 08:49 GMT