EUR/USD Technical Analysis: Stalling After Sub-1.30 Plunge
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2933, 1.2864, 1.2794
- Resistance:1.3020, 1.3073, 1.3104
The Euro is in digestion mode after plummeting below the 1.30 figure against the US Dollar for the first time in over a year. Near-term support is at 1.2933, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.2864. Alternatively, a reversal above the intersection of the 23.6% Fib and channel floor support-turned-resistance at 1.3020 clears the way for a challenge of the 14.6% expansion at 1.3073.
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.