EUR/USD Technical Analysis – Aiming Below the 1.35 Figure
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- EUR/USD Technical Strategy: Flat
- Support: 1.3476-1.3502 (Feb 3 low, Jun 5 low, 38.2% Fib exp.), 1.3431 (50% Fib exp.)
- Resistance:1.3560 (23.6% Fib exp.), 1.3585 (May 29 low)
The Euro moved aggressively lower against the US Dollar, breaking out of a two-week consolidation range to issue the weakest daily close in four months. Sellers now aim to challenge the 1.3476-1.3502 area, a region bracketed by the June 5 and February 3 lows with added reinforcement from the 38.2% Fibonacci expansion. A break below that exposes the 50% level at 1.3431. Alternatively, a move above the 23.6% Fib at 1.3560 opens the way for a retest of the May 29 low at 1.3585.
Our last short EURUSD position was fully unwound last week and we are watching for a new selling opportunity in line with our long-term fundamental outlook. Risk/reward considerations argue against entering the trade for now however.
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.