Forex: EUR/USD Technical Analysis – Critical Channel Floor Tested
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3779-81 (38.2% Fib ret., channel floor), 1.3721 (50% Fib ret.)
- Resistance: 1.3850 (23.6% Fib ret.), 1.3876 (trend line)
An actionable short Euro trade setupin line with our long-term fundamental outlook remains elusive after an expected move lower the US Dollar. The spotlight is on support in the 1.3779-1.38 area, marked by the 38.2% Fibonacci retracement and a rising channel bottom set from late January. We will look for a daily close below this boundary to confirm reversal and position for selling opportunities. The break lower would initially expose the 50% level at 1.3721. Alternatively, a breach above the 23.6% Fib at 1.3850 would target recently broken rising trend line support-turned-resistance at 1.3876.
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.