EUR/USD Technical Analysis: Looking to Re-Enter Short
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- EUR/USD Technical Strategy: Flat
- Support: 1.2653, 1.2615, 1.2507
- Resistance:1.2783, 1.2958, 1.3100
The Euro moved higher as expected against the US Dollar after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.2783, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 1.2958. Alternatively, a reversal below trend line resistance-turned-support at 1.2653 opens the door for a test of the 14.6% Fib expansion at 1.2615.
We booked profits on a Euro short position earlier this week and will now look for a new selling opportunity in line with our long-term fundamental outlook. As it stands, prices are too close to support to justify entry from a risk/reward perspective.
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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.