Forex: EUR/USD Technical Analysis – Stalling Before ECB Outcome
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- EUR/USD Technical Strategy: Short at 1.3757
- Support: 1.3476 (Feb 3 low), 1.3459 (channel bottom)
- Resistance: 1.3574 (23.6% Fib ret.), 1.3635 (38.2% Fib ret.)
We remain short EUR/USD at 1.3757 in line with our long-term fundamental outlook. The latest leg of the selloff began as expected after the pair produced a Shooting Star candle following a corrective rebound. A stop-loss will be activated on a daily close above the January 24 high at 1.3738. The trade’s first major objective remains at 1.3209 (the 23.6% Fibonacci expansion formed by the April 2011 high, the July 2012 low, and the December 2013 swing top).
Prices are now hovering above support at a falling channel bottom set from late December as investors await the outcome of the ECB policy announcement. A daily close above 1.3574, the intersection of the 23.6% Fibonacci retracement and a rising trend line set from early September, targets the 38.2% level at 1.3635. Near-term support remains at 1.3476, the February 3 low, followed by the channel bottom at 1.3459.
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.