EUR/USD Technical Analysis – Waiting for Direction Cues
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- EUR/USD Technical Strategy: Short at 1.3654
- Support: 1.3561 (61.8% Fib ret.), 1.3459-76 (Feb 3 low, 76.4% Fib ret.)
- Resistance:1.3643 (50% Fib ret.), 1.3726 (38.2% Fib ret.)
The Euro appears likely to continue lower after falling to the lowest level in almost four months against the US Dollar. Sellers are now aiming to challenge the 61.8% Fibonacci retracement at 1.3561, with daily close below that exposing the 1.3458-76 area marked by the February 3 low and the 76.4% level. Alternatively, a turn above resistance at 1.3643, the 50% Fib clears the way for a test of the 38.2% retracement at 1.3726.
We sold EURUSD at 1.3654 in line with our long-term fundamental outlook and have since booked profit on half of the position. The remainder of the trade will remain open to take advantage of any further downward momentum. The stop-loss has been revised to the breakeven level.
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.