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Talking Points:
- EUR/USD Technical Strategy: Pending Short
- Support: 1.3583, 1.3502-12, 1.3454
- Resistance:1.3646, 1.3689, 1.3747
The Euro declined against the US Dollar as expected after prices put in a bearish Evening Star candlestick pattern below the 1.37 figure. Sellers are testing support at 1.3583, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 1.3502-12 cluster marked by the June 5 low and the 38.2% level. Alternatively, a reversal above rising trend line support-turned-resistance at 1.3646 opens the door for a test of the 38.2% Fibonacci retracement at 1.3689.
We are still looking to sell the Euro in line with our long-term fundamental outlook. Price are too close to support to justify a trade at current levels from a risk/reward perspective however, and will continue to stand aside for now until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
