Forex: EUR/USD Technical Analysis – Trend Channel Top in Focus
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- EUR/USD Technical Strategy: Short at 1.3757
- Support: 1.3574 (23.6% Fib ret.), 1.3537 (14.6% Fib ret.)
- Resistance: 1.3595 (trend line), 1.3635 (38.2% Fib ret.)
We are shortEuro against the US Dollar at 1.3757 in line with our long-term fundamental outlook. The single currency launched a rebound from support the bottom of a falling channel set from late December, with prices now testing resistance at 1.3635 marked by the 38.2% Fibonacci retracement. A break above this barrier exposes the channel top at 1.3665. Alternatively, reversing below support at 1.3574, the 23.6% retracement, aims for the February 3 low at 1.3476.
We see positioning as still favoring the downside. A stop-loss has been set to trigger on a daily close above 1.3738, the January 24 high. Our first long-term objective is 1.3209.
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.