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Talking Points:
- EUR/USD Technical Strategy: Short at 1.3654
- Support: 1.3598 (76.4% Fib exp.), 1.3476 (Feb 3 low)
- Resistance:1.3673 (61.8% Fib exp.), 1.3713 (wedge floor)
The Euro is pausing to digest losses after breaking below the bottom of a Rising Wedge chart formation traced out since late 2013. Immediate support is now at 1.3598, the 76.4% Fibonacci retracement, with a daily close below that exposing the February 3 low at 1.3476. Alternatively, a reversal above the 61.8% level at 1.3673 opens the way for a retest of the Wedge bottom, now at 1.3713.
We sold EURUSD at 1.3654 as technical positioning began to agree with our long-term fundamental outlook, initially targeting 1.3598. A stop-loss will be triggered on a daily close above 1.3710. We will book profit on half of the trade and trail the stop to breakeven once the first objective is hit.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
