Forex: EUR/USD Technical Analysis – Stalling at Channel Top
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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. Resistance is marked by a falling channel top at 1.3660 and the 50% Fibonacci retracement at 1.3681. A close above the latter level exposes the 61.8% level at 1.3730. A turn back below the 38.2% Fib at 1.3633 targets the 23.6% retracement at 1.3573.
We continue to see the downside as the path of least resistance. A stop-is set to be activated 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