EUR/USD Technical Analysis: Corrective Recovery Expected
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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 readying to correct higher against the US Dollar after an Evening Star candlestick pattern marked a reversal downward, as expected. The case for an upside scenario hinges on the appearance of a Hammer candle coupled with positive RSI divergence. A daily close above the 23.6% Fibonacci retracement at 1.3419 exposes 1.3472, the intersection of the 38.2% level and a falling channel top. Alternatively, a turn below the 23.6% Fib expansion at 1.3345 opens the door for a test of the 38.2% threshold at 1.3291.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. Any on-coming upswing 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.