EUR/USD Candlestick Analysis: Euro Rebound Risk Remains
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EUR/USD Strategy: Flat
Positive RSI Divergence Hints at Rebound
Recovery to be Used as Selling Opportunity
The Euro remains in consolidation mode against the US Dollar but positive RSI divergence warns of fading downside momentum and hints a rebound is ahead. Weekly resistance comes in at 1.1519, the 14.6% Fibonacci retracement, with a break above that exposing the 23.6% level at 1.1780. Initial support is at 1.1096, the January low.
An advance is likely to be corrective, both in terms of the long-term down trend dating back to April 2008 as well as our fundamental outlook. With that in mind, we will look for a bounce to run its course and monitor positioning for an on-coming selling opportunity.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com