EUR/USD Technical Analysis: Testing 4-Month Trend Floor
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- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3248, 1.3190-204, 1.3151
- Resistance:1.3291, 1.3345, 1.3432
The Euro is testing the lower bound of its nearly four-month long downswing against the US Dollar after touching the lowest level since September 2013. Near-term support is in the 1.3177-1.3204 area, marked by the 61.8% Fibonacci expansion and a falling channel floor, with a daily close below that exposing the 76.4% level at 1.3151. Alternatively, a turn above the 50% Fib at 1.3248 clears the way for a challenge of the 38.2% expansion 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. The rest is open to capture further weakness with a stop-loss at breakeven.
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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.