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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.