EUR/USD Technical Analysis – Initial Support Met Sub-1.38
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3835 (23.6% Fib exp.), 1.3793 (38.2% Fib exp.)
- Resistance: 1.3905 (Apr 11 high)
The Euro has turned lower anew against the US Dollar having found resistance just above the 1.39 figure. Prices are testing support at 1.3793, the 38.2% Fibonacci expansion, with a break below that targeting the 50% level at 1.3758. Near-term resistance is at 1.3905, the April 11 swing high.
We continue to see the long-term fundamental outlook as favoring Euro weakness against the greenback. Risk/reward considerations ague against entering short with prices sitting squarely at near-term support however. With that in mind, we will remain on the sidelines for the time being, waiting for a more attractive selling opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com