EUR/USD Technical Analysis: Digesting Losses at 8-Month Low
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3454, 1.3396, 1.3324
- Resistance:1.3502-12, 1.3583, 1.3633
The Euro fell as expected against the US Dollar after prices put in a bearish Evening Star candlestick pattern. Sellers are testing support at 1.3454, the 50% Fibonacci expansion. A daily close below this boundary initially exposes the 61.8% level at 1.3396. Alternatively, a move back above the 1.3502-12 area, marked by the 38.2% Fib and the June 5 low, clears the way for a test of the 23.6% expansion at 1.3583.
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.