EUR/USD Technical Analysis – Spotlight on Wedge Support
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3673-94 (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 paused to digest losses after sinking to the weakest level in over a month against the US Dollar having found resistance below the 1.40 figure. Near-term support is in the 1.3673-94 area, marked by the 61.8% Fibonacci retracement and the bottom of a Rising Wedge formation, with a break downward exposing the 76.4% level at 1.3598.Alternatively, a reversal above the 50% Fibat 1.3734 aims for the 38.2% retracement at 1.3795.
Risk/reward considerations argue against entering short in line with our long-term fundamental outlook as the pair rests at support. We will remain flat, waiting for an actionable short trade 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.