EUR/USD Candlestick Analysis: Euro May Correct Higher
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- EUR/USD Strategy: Flat
- Familiar Range Above 1.05 Still in Play
- Candle Setup May Yet Yield Recovery
The Euro continues to tread water against its US counterpart, with prices drifting in a choppy range above the 1.05 figure. A break below the 14.6% Fibonacci expansion at 1.0535 exposes the intersection of a multi-year channel floor and the 23.6% level at 1.0217. Alternatively, a move above the 14.6% Fib retracement at 1.0973 targets the 23.6% threshold at 1.1291.
A bullish Piercing Line candlestick pattern completed in mid-March remains valid and may yet be followed by a more substantive recovery. We intend to treat any such gains as corrective in line with our long-term bearish fundamental outlook and wait for a short setup to crystallize after upside momentum fades.
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.