EUR/USD Long Trade Setup Begins to Take Shape
EUR/USD Technical Strategy: Pending Long
Prices have completed a Bullish Engulfing candlestick pattern, hinting a move higher is ahead. Positive RSI divergence reinforces the case for an upside scenario. Initial resistance is at 1.3139, the 23.6% Fibonacci retracement. This hurdle is reinforced by a falling trend line set from the February 1 high. A break higher exposes the 38.2% level at 1.3248. Near-term support is at 1.2963, the March 6 low. We will look for confirmation of a break out to enter long in line with our 2013 outlook.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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