EUR/USD Technical Analysis: Euro May Be Ready to Recover
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2602, 1.2532, 1.2445
- Resistance:1.2673, 1.2760, 1.2858
The Euro may be preparing to launch a recovery against the US Dollar after prices put in a bullish Morning Star candlestick pattern. A daily close above the 1.2659-73 area marked by the November 2012 low and the 38.2% Fibonacci expansion exposes the 1.2754-60 zone bracketed by the July 2013 bottom and the 23.6% level. Alternatively, a reversal below the 50% Fib at 1.2602 clears the way for a challenge of the 61.8% expansion at 1.2532.
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.