EUR/USD Technical Analysis: Selloff Resumes After a Pause
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2864, 1.2794, 1.2708
- Resistance:1.2933, 1.3020, 1.3073
The Euro resumed its move lower against the US Dollar after a brief pause, sinking to a 14-month low. A daily close below the 50% Fibonacci expansion at 1.2864 exposes the 61.8% level at 1.2794. Alternatively, a turn above the 38.2% Fib at 1.2933 opens the door for a test of the 1.2998-1.3020 area marked by a formerly broken channel floor and the 23.6% expansion.
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 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.