Forex: EUR/USD Technical Analysis – Euro Sinks to 3-Week Low
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3721 (50% Fib ret.), 1.3663 (61.8% Fib ret.)
- Resistance: 1.3779 (38.2% Fib ret.), 1.3817 (channel bottom)
The Euro fell as expected against the US Dollar, dropping through rising channel support set from early February and clearing the 38.2% Fibonacci retracement at 1.3779. A short entry in line with our long-term fundamental outlook appears unattractive from a risk/reward perspective for now however with prices too close to the next layer of support at 1.3721, the 50% Fib. We will continue to wait for now, looking to identify a workable opportunity to sell the pair. A break below support exposes the 61.8% Fib at 1.3663. Alternatively, a move back above 1.3779 aims for channel bottom support-turned-resistance at 1.3817.
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.