EUR/USD Technical Analysis: Aiming to Sell More on Bounce
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3345, 1.3291, 1.3248
- Resistance:1.3419, 1.3472, 1.3516
The Euro may be preparing for a rebound against the US Dollar having declined as expected after showing a bearish Evening Star candlestick pattern. The appearance of a Hammer candle coupled with positive RSI divergence now argues for an on-coming correction. Near-term resistance is at 1.3419, the 23.6% Fibonacci retracement, with a daily close above that exposing the intersection of the 38.2% level and a falling channel top at 1.3472. Alternatively, a reversal below the 23.6% Fib expansion at 1.3345 clears the way for a challenge of the 38.2% threshold at 1.3291.
We entered short EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. An upswing from here will be treated as an opportunity to add to the position.
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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.