EUR/USD Technical Analysis – Channel Resistance at Risk
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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3476-1.3502 (Feb 3 low, Jun 5 low)
- Resistance:1.3600 (channel top), 1.3676-89 (38.2% Fib ret., Jun 6 high)
The Euro edged cautiously higher against the US Dollar, issuing the strongest daily close in over a week. A close above 1.3585, the May 29 low, has exposing a falling channel top at 1.3600. A break above that exposes the 1.3676-89 marked by the 38.2% Fibonacci retracement and the June 6 high. Alternatively, a reversal back below 1.3585 clears the way for another challenge of the 1.3476-1.3502 zone, a region bracketed by swing lows set on February 3 and June 5.
Our long-term fundamental outlook calls Euro weakness against the greenback and we continue to look for selling opportunities. An actionable trade setup is absent however and we will continue to stand asidefor the time being.
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.