Forex: EUR/USD Technical Analysis – Short Trade Setup Sought
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3719 (76.4% Fib exp.), 1.3689 (61.8% Fib exp.)
- Resistance: 1.3767-72 (trend line, 100% Fib exp.), 1.3801 (double top)
We were stopped out of our short EUR/USD position from 1.3757 after prices closed above our revised stop-loss at 1.3738, the January 24 high. The daily close matched our initial entry price and we exited the trade at breakeven.
Prices are now testing resistance in the 1.3767-72 area, marked by the 100% Fibonacci expansion and a falling trend line set from late October. A break above this boundary targets the 1.38 figure. Alternatively, a reversal below the 76.4% level at 1.3719 eyes the 61.8% Fib at 1.3689. We are waiting on the sidelines for a new short trade signal in line with our fundamental outlook.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com