EURUSD: Looking for Short Trade Setup
Strategy: Pending Short
Prices put in a Bearish Engulfing candlestick pattern below resistance at 1.3460, hinting a deeper pullback may be ahead. Risk/reward considerations argue against entering short however with the next layer of support just ahead at 1.3282 at the 23.6% Fibonacci retracement level. As such, we will remain on the sidelines for now. A daily close below 1.3282 initially exposes the 38.2% Fib at 3156. Alternatively, a break above 1.3460 targets falling trend line resistance at 1.3606.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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