EUR/USD Technical Analysis – Struggling to Find Direction
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3859 (38.2% Fib exp.), 1.3787-92 (23.6% Fib exp., Triangle floor)
- Resistance: 1.3879 (Triangle top), 1.3917 (50% Fib exp.)
The Euro is wedged in a narrow range against the US Dollar, with positioning tracing out a Triangle chart pattern. A daily close above the pattern’s ceiling at 1.3879 initially exposes the 50% Fibonacci expansion at 1.3917. Alternatively, a reversal below the 38.2% level at 1.3859 sees the next layer of support in the 1.3787-92 area, marked by the 23.6% Fib and the Triangle floor.
We broadly favor selling the Euro in line with our long-term fundamental outlook but attempting to trade this view looks unattractive from a risk/reward consideration given the narrow range now in play. With that in mind, we will continue to wait on the sidelines for an actionable setup to present itself.
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.