EUR/USD Technical Analysis: Short Trade Entry Sought
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- EUR/USD Technical Strategy: Flat
- Support: 1.2750, 1.2619, 1.2500
- Resistance:1.2852, 1.3070, 1.3246
The Euro moved higher against the US Dollar as expected after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.2852, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 1.3070. Alternatively, a reversal below the October 13 close at 1.2750 opens the door for a test of the October 1 close at 1.2619.
We booked profits on a Euro short position earlier this month and are now look for a new selling opportunity in line with our long-term fundamental outlook. As it stands, the absence of a defined bearish reversal signal suggests entering at present is premature.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com