Forex: EUR/USD Technical Analysis – Breakdown Confirmation Pending
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3779 (38.2% Fib ret., channel floor), 1.3721 (50% Fib ret.)
- Resistance: 1.3850 (23.6% Fib ret.), 1.3966 (Mar 13 high)
The Euro turned lower as expected against the US Dollar but confirmation of a larger reversal remains absent for the time being. Near-term support is at 1.3779, marked by a rising channel bottom and the 38.2% Fibonacci retracement. We will look for a break below this barrier on a daily closing basis to look for selling opportunities in line with our long-term fundamental outlook. Such a move would initially expose the 50% level at 1.3721. Alternatively, a daily close above the 23.6% Fib at 1.3850 targets the March 13 high at 1.3966.
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.