EUR/USD Technical Analysis: Euro May Be Set to Bounce
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2858, 1.2796, 1.2673
- Resistance:1.2951, 1.2994, 1.3074
The Euro may correct higher against the US Dollar after forming a bullish Piercing Line candle pattern coupled with positive RSI divergence. A daily close above trend line resistance at 1.2951 exposes the September 16 high at 1.2994. Alternatively, reversal below above the 1.2858-71 area marked by the September 9 low and the 14.6% Fibonacci expansion opens the door for a test of the 23.6% level at 1.2796.
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.