EUR/USD Technical Analysis: Critical Resistance Above 1.27
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- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2500, 1.2377, 1.2278
- Resistance:1.2703, 1.2777, 1.2848
The Euro may have formed an interim bottom against the US Dollar after producing a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.2703, the intersection of the November 2012 bottom and a falling trend line, with a break above that on a daily closing basis exposing the March 2013 floor at 1.2777. Alternatively, a move below the 23.6% Fib expansion at 1.2500 opens the door for a test of the 38.2% level at 1.2377.
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