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- EUR/USD Technical Strategy: Pending Short
- Support: 1.3654, 1.3583, 1.3502-12
- Resistance:1.3689-1.37, 1.3747, 1.3805
The Euro may have set a top below 1.37 to the US Dollar after prices carved out a bearish Evening Star candlestick pattern. A daily close below rising trend line support at 1.3654 exposes the 23.6% Fibonacci expansion at 1.3583. Alternatively, a reversal above the 38.2% Fib retracement at 1.3689 and the 1.37 figure clears the way for a challenge of the 50% level at 1.3747.
Our long-term fundamental outlook calls for a weaker Euro against the greenback, but actionable confirmation of reversal needs a close below rising trend line support. Until that happens, we will hold off on entering short.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com