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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3917 (50% Fib exp.), 1.3877 (Triangle top)
- Resistance: 1.3974 (61.8% Fib exp.), 1.4019 (Wedge top)
The Euro launched upward against the US Dollar, breaking multiple layers of technical resistance and hitting the highest level in two months. Buyers are now poised to challenge resistance at 1.3974, the 61.8% Fibonacci expansion, with a break above that exposing the top of a rising Wedge formation at 1.4019. Alternatively, a reversal below the 50% level at 1.3917 eyes resistance-turned-support at a broken Triangle top (now at 1.3877).
Our long-term fundamental outlook continues to favor Euro weakness, but trading that view in defiance of near-term upward momentum seems ill-advised. With that in mind, we will continue to stand aside for the time being until a viable selling opportunity presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com