EUR/USD Technical Analysis: Euro Recovery Tipped Ahead
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.3104, 1.3064, 1.3001
- Resistance:1.3151, 1.3204, 1.3248
The Euro may be setting up for a rebound against the US Dollar as positive RSI divergence warns of ebbing bearish momentum. Near-term resistance is at 1.3151, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.3204. Alternatively, a turn below the September 2013 low at 1.3104 clears the way for a challenge of the 100% Fib at 1.3064.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest remains open to capture any further downside momentum with a stop-loss at 1.3583, our initial objective.
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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.