EUR/USD Technical Analysis: Holding Short Through Bounce
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3415, 1.3366, 1.3294
- Resistance:1.3445, 1.3493, 1.3533
The Euro declined against the US Dollar as expected after prices put in a bearish Evening Star candlestick pattern. A shallow rebound sees prices testing resistance at 1.3445, the 23.6% Fibonacci retracement. A daily close above that exposes 1.3493, the intersection of the 38.2% level and a falling channel top. Alternatively, turn below the 14.6% Fib at 1.3415 opens the door for another challenge of the November 8 2013 close at 1.3366.
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 of the trade remains active with a stop-loss at 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.