EUR/USD Technical Analysis: Short Trade Nears First Target
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3583, 1.3502-12, 1.3454
- Resistance:1.3668, 1.3689, 1.3747
The Euro declined as expected against the US Dollar after prices put in a bearish Evening Star candlestick pattern. Support is at 1.3583, the 23.6% Fibonacci expansion, with a daily close below that exposing the 1.3502-12 area marked by the June 5 low and the 38.2% level.A turn above rising trend line support-turned-resistance at 1.3668 opens the door for a test of the 38.2% Fib retracement at 1.3689.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook, initially targeting 1.3583. A stop-loss will trigger on a close above 1.3700.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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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.