EUR/USD Technical Analysis: Profits Booked on Short Position
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- EUR/USD Technical Strategy: Flat
- Support: 1.2703, 1.2673, 1.2633
- Resistance:1.2777, 1.2848, 1.2955
The Euro recovered against US Dollar as expected after putting in a bullish Piercing Line candlestick pattern. A daily close above support-turned-resistance at 1.2777, the March 2013 bottom, exposes the 38.2% Fibonacci retracement at 1.2848. Alternatively, a turn below the 1.2703-15 area marked by the November 2012 floor and the 23.6% Fib clears the way for a challenge of trend line resistance-turned-support at 1.2673.
We sold EURUSD at 1.3644and have since booked profit on half of the position. We will now exit the rest of the trade and wait for new selling opportunities in line with our long-term fundamental outlook.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com