EUR/USD Technical Analysis – Wedge Floor Still in Focus
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3673-99 (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 is in consolidation mode after finding resistance below 1.40 and dropping to the lowest level in three months against the US Dollar. The first layer of support is in the 1.3673-99 area, marked by the 61.8% Fibonacci retracement and the bottom of a Rising Wedge formation. A daily close below this boundary targets the 76.4% level at 1.3598.Alternatively, a turn above the 50% Fibat 1.3734 exposes the 38.2% retracement at 1.3795.
Prices are too close to relevant support to justify entering short in line with our long-term fundamental outlook from a risk/reward perspective. We will remain on the sidelines for the time being, waiting for a selling opportunity 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.