EUR/USD Technical Analysis: Positioning Turns Conflicted
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3316, 1.3277, 1.3238
- Resistance:1.3365, 1.3419, 1.3472
The Euro declined against the US Dollar as expected after prices put in a bearish Evening Star candlestick pattern. A narrow break below the 23.6% Fibonacci expansion at 1.3365 has exposed the 38.2% level at 1.3316. Pushing further below that aims for the 50% Fib at 1.3277. Positive RSI divergence hints an upturn may be ahead, with a move above 1.3365 targeting the 23.6% Fib retracement at1.3419.
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