Forex: EUR/USD Technical Analysis – Short Trade Entry Sought
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3674 (23.6% Fib exp.), 1.3613 (38.2% Fib exp.)
- Resistance: 1.3711 (14.6% Fib exp.), 1.3768 (trend line), 1.3800 (double top)
The Euro is correcting higher to retest support-turned-resistance at 1.3711, the 14.6% Fibonacci expansion. A break above this barrier exposes a falling trend line set from late October, now at 1.3768, followed by the 1.38 figure. Alternatively, a reversal through support at 1.3674 marked by the 23.6% level targets the 38.2% Fib at 1.3613.
A long trade lacks confirmation of an upside breakout while a short position in line with our long-term fundamental outlook is unattractive from a risk/reward perspective for the time being. As such, we will stand aside for now waiting for another entry point 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.