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Talking Points:
- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3502-12, 1.3454, 1.3396
- Resistance:1.3583-1.36, 1.3650, 1.3689
The Euro fell against the US Dollar as expected after producing a bearish Evening Star candlestick pattern. Sellers are now targeting the 1.3502-12 area (38.2% Fibonacci expansion, June 5 low), with a break below that on a daily closing basis exposing 1.3454 (50% Fib). Alternatively, a turn above the 1.3583-1.36 area (23.6% Fib, trend line) exposes 1.3650 (July 10 high).
We entered short EURUSD at 1.3644 in line with our long-term fundamental outlook. We have since booked profit on half of the position. The remainder remains active with a stop-loss at the breakeven level to capture any further weakness in the days ahead.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
