The Euro found support at the bottom of a falling channel set from mid-March after declining as expected against the US Dollar. A bounce from here targets the 1.3814-30 area, marked by the channel top and the 23.6% Fibonacci expansion, with a break higher exposing the 38.2% level at 1.3928. Near-term support lines up at the channel bottom, now at 1.3663.
My long-term fundamental outlook calls for a weaker Euro against the greenback, but entering short at current levels looks unattractive from a risk/reward perspective. I will remain on the sidelines for now, aiming for a continued correction higher to provide a better selling opportunity in the days ahead.
