Forex: EUR/USD Technical Analysis – Key Channel Bottom Breached
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- EUR/USD Technical Strategy: Flat
- Support: 1.3779 (38.2% Fib ret.), 1.3721 (50% Fib ret.)
- Resistance: 1.3800 (horizontal pivot), 1.3850 (23.6% Fib ret.)
The Euro fell as expected against the US Dollar, taking out rising channel set from early February and sinking past the 1.38 figure anew. Sellers are now testing the 38.2% Fibonacci retracement at 1.3779, with a conclusive break downward exposing the 50% level at 1.3721. Alternatively, a reversal back above the 1.38 mark aims for the 23.6% Fib at 1.3850.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. We will stand aside for now, waiting for a viable opportunity to enter short in line with our long-term fundamental outlook.
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.