EUR/USD Technical Analysis: Holding Short in Consolidation
To receive Ilya's analysis directly via email, please SIGN UP HERE
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.