Forex: EUR/USD Technical Analysis – Downward Breakout at Hand?
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3674-98 (23.6% Fib exp., Jan 14 high), 1.3613 (38.2% Fib exp.)
- Resistance: 1.3767 (trend line), 1.3800 (double top)
The Euro recoiled from resistance in the 1.3767-1.38 area, marked by a falling trend line set from the October 2013 swing high and double top. Prices are now testing through support in the 1.3674-98 region marked by the 23.6% Fibonacci expansion and the January 14 high, with a break below that exposing the 38.2% level at 1.3613. Alternatively, a move above the trend line (1.3767) aims for the 1.38 figure.
We will wait for confirmation of a breakout on a daily close below support to evaluate the viability of a short position in line with our fundamental outlook after our previous attempt to sell the pair was stopped out at breakeven.
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.