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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3673-86 (61.8% Fib exp., wedge floor), 1.3598 (76.4% Fib exp.)
- Resistance: 1.3734 (50% Fib exp.), 1.3795 (38.2% Fib exp.)
The Euro continued to sink for a fifth consecutive day having produced a double top below the 1.40 figure against the US Dollar. Support is now in the 1.3673-86 area, marked by the 61.8% Fibonacci retracement and the bottom of a rising wedge chart formation in play since late last year. A break downward on a daily closing basis exposes the 76.4% level at 1.3598. Alternatively, a reversal back above the 50% Fib at 1.3734 targets the 38.2% retracement at 1.3795.
We are looking to enter short in line with long-term fundamental outlook but the pair is too close to relevant support to justify a trade from a risk/reward perspective. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com