Forex: EUR/USD Technical Analysis – Key Channel Top in Focus
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3672 (Apr 4 low), 1.3653 (channel floor)
- Resistance: 1.3805-30 (channel top, 23.6% Fib exp.), 1.3928 (38.2% Fib exp.)
The Euro fell against the US Dollar as expected and we continue to monitor price action for an opportunity to enter short based on our long-term fundamental outlook. A bounce from support at the bottom of a falling channel set from mid-March has brought prices to face resistance in the 1.3805-30 area, marked by the pattern’s top and the 23.6% Fibonacci expansion. We will monitor prices for signs of downward reversal at this juncture to sell the pair. Near-term support is at 1.3672, the April 4 low, followed by the channel floor at 1.3653. Alternatively, a break upward from here aims for the 38.2% expansion at 1.3928.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com