EUR/USD Technical Analysis – Waiting for Selling Opportunity
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- EUR/USD Technical Strategy: Pending Short
- 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 continued to edge downward against the US Dollar after yesterday’s aggressive downturn, issuing the lowest close in four months. Near-term support is seen in the 1.3476-1.3502 zone, an area bracketed by the June 5 and February 3 lows and reinforced by the 38.2% Fibonacci expansion. A break below that on a daily closing basis targets the 50% level at 1.3431. Alternatively, a move back above the 23.6% Fib at 1.3560 clears the way for a retest of the May 29 low at 1.3585, followed support-turned-resistance at 1.3672.
Our most recent short EURUSD position was unwound last week. Risk/reward parameters argue against re-entering the trade in line with our long-term fundamental outlook and we will monitor developments from the sidelines for now.
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.