Forex: EUR/USD Technical Analysis – Treading Water at Support
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- EUR/USD Technical Strategy: Short at 1.3757
- Support: 1.3476 (Feb 3 low)
- Resistance: 1.3574 (23.6% Fib ret.), 1.3635 (38.2% Fib ret.)
We continue to hold short EUR/USD at 1.3757 in line with our fundamental outlook. The downturn’s latest leg began as expected as the pair produced a Shooting Star candlefollowing a brief upswing. The stop-loss is set to trigger on a daily close above January 24 high at 1.3738.The first long-term objective remains at 1.3209.
Prices are in wait-and-see mode before tomorrow’s ECB policy announcement having found support at a falling channel bottom set from late December. A rebound that produces a close above 1.3574, the 23.6% Fibonacci retracement, would expose the 38.2% level at 1.3635. Support is at 1.3476, the February 3 low.
Daily Chart - Created Using FXCM Marketscope 2.0
--- 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.