EUR/USD Technical Analysis: Euro Sinks to One-Month Low
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3502-12, 1.3454, 1.3396
- Resistance:1.3583-1.3603, 1.3650, 1.3689
The Euro fell as expected after prices produced a bearish Evening Star candlestick pattern, sinking to the lowest level in a monthagainst US Dollar. Sellers are set to test support in the 1.3502-12 area (38.2% Fibonacci expansion, June 5 low). A daily close below this boundary initially exposes 1.3454 (50% Fib). Alternatively, move back above the 1.3583-1.3603 zone (23.6% Fib, trend line) targets 1.3650 (July 10 high).
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The stop-loss on our remaining exposure has been moved to the breakeven level.
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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.