Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

EUR/USD Technical Analysis – Looking for a Short Trade

By , Currency Strategist
11 May 2014 23:27 GMT

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Pending Short
  • Support: 1.3734 (50% Fib ret.), 1.3673-81 (61.8% Fib ret., wedge bottom)
  • Resistance: 1.3795-1.3810 (38.2% Fib ret., trend line), 1.3932 (double top)

The Euro slumped to the lowest level in a month against the US Dollar, breaking trend line support and hinting a double top is set below 1.40. Sellers are aiming to challenge the 50% Fibonacci retracement at 1.3734, with a break below that exposing the 1.3673-81 area marked by the 61.8% level and the bottom of a Rising Wedge formation. Alternatively, a reversal above the 1.3795-1.3810 region (38.2% Fib, trend line), targets the double top at 1.3932. Prices are too close to support to justify entering short in line with our long-term fundamental outlook from a risk/reward perspective. We will remain flat for now, waiting for a short trade setup to emerge.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

EUR/USD Technical Analysis – Looking for a Short Trade

Daily Chart - Created Using FXCM Marketscope 2.0

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

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

11 May 2014 23:27 GMT