EUR/USD Technical Analysis: Waiting to Re-Enter Short Trade
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- EUR/USD Technical Strategy: Flat
- Support: 1.2615, 1.2507, 1.2332
- Resistance:1.2783, 1.2958, 1.3100
The Euro recovered against US Dollar as expected after putting in a bullish Piercing Line candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 1.2783 exposes the 38.2% level at 1.2958. Alternatively, a turn below the 14.6% Fib expansion at 1.2615 clears the way for a challenge of the 23.6% threshold at 1.2507.
We took profits on a Euro short position last week and will aim to re-enter the trade in line with our long-term fundamental outlook when the opportunity presents itself. As it stands, prices are too close to support to justify the trade from a risk/reward perspective and we will remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com