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Talking Points:
- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3365, 1.3316, 1.3277
- Resistance:1.3419, 1.3472, 1.3516
The Euro fell as expected against the US Dollar after prices put in a bearish Evening Star candlestick pattern. A Hammer candle above the 23.6% Fibonacci expansionat 1.3365 hints a corrective bounce may be ahead. Closing above the 23.6% Fib retracement at 1.3419 on a daily basis exposes 1.3472, the intersection of the 38.2% level and a falling channel top set from May. A drop through support targets the 38.2% expansion at 1.3316.
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
