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EUR/USD Technical Analysis: Short Position Activated

EUR/USD Technical Analysis: Short Position Activated

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • EUR/USD Technical Strategy: Short at 1.3644
  • Support: 1.3583, 1.3502-12, 1.3454
  • Resistance:1.3661, 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. A corrective bounce has offered an improvement in risk/reward parameters and we will now enter shortin line with our long-term fundamental outlook, initially targeting a return to the 23.6% Fibonacci expansion at 1.3583. A daily close beneath this barrier would expose the 1.3502-12 area marked by the June 5 low and the 38.2% level.Alternatively, a reversal above rising trend line support-turned-resistance at 1.3661 clears the way for a challenge of the 38.2% Fib retracement at 1.3689.

A stop-loss will be activated on a daily close above the 1.3700 figure.We will take profit on half of the trade and move the stop-loss to breakeven on the remainder of the position once the first target is met.

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EUR/USD Technical Analysis: Short Position Activated

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.

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