EUR/USD Technical Analysis – Key Channel Top Retested
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- EUR/USD Technical Strategy: Short at 1.3757
- Support: 1.3584 (23.6% Fib exp.), 1.3523 (38.2% Fib exp.)
- Resistance: 1.3674 (channel top), 1.3738 (Jan 24 high)
We remain shortEuro against the US Dollar at 1.3757, reflecting our long-term fundamental outlook. Our first major objective remains at 1.3209 (the 23.6% Fib expansion formed by the April 2011 high, the July 2012 low, and the December 2013 top).
Prices recoiled from support at 1.3584, the 23.6% Fibonacci expansion, to retest falling channel resistance at 1.3674. A close above this boundary threatens to overturn the near-term down trend and expose our stop-loss, set to be triggered on a close above the January 24 high at 1.3738. Alternatively, a reversal through support exposes the 38.2% Fib at 1.3523.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com