We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
EUR/USD Technical Analysis – Wedge Break Hints at Weakness

EUR/USD Technical Analysis – Wedge Break Hints at Weakness

2014-05-22 03:04:00
Ilya Spivak, Sr. Currency Strategist

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Pending Short
  • Support: 1.3673 (61.8% Fib exp.), 1.3598 (76.4% Fib exp.)
  • Resistance: 1.3705 (wedge floor), 1.3734 (50% Fib exp.)

The Euro may be readying to accelerate downward after prices cleared support at the bottom of a Rising Wedge chart formation traced out since late October. Sellers are testing support at 1.3673, marked by the 61.8% Fibonacci retracement, with a break below that exposing the 76.4% level at 1.3598. Alternatively, a move back above the Wedge floor (now at 1.3705) aims for the 50% Fib at 1.3734.

We have been waiting to sell the Euro in line with our long-term fundamental outlook and the Wedge break is a promising step in that direction but sitting right on Fib support makes the trade unattractive from a risk/reward perspective. We will begrudgingly stand aside for now.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

EUR/USD Technical Analysis – Wedge Break Hints at Weakness

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.


News & Analysis at your fingertips.