EUR/USD Technical Analysis: Short Entry Setup Established
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- EUR/USD Technical Strategy: Pending Short at 1.2710
- Support: 1.2500, 1.2316, 1.2140
- Resistance:1.2731, 1.2852, 1.3070
The Euro appears to be resuming the dominant down trend against the US Dollar after rebounding from the 1.25 figure, as expected. A daily close below support in the 1.2500-34 area marked by the October 3 low and the 23.6% Fibonacci expansion exposes the 38.2% level at 1.2316. Alternatively, a turn above channel support-turned-resistance at 1.2731 clears the way for a challenge of the 23.6% Fib retracement at 1.2852.
Risk/reward considerations are skewed against entering short at current levels and we will establish a pending order to sell the pair at 1.2710 in line with our long-term fundamental outlook. If triggered, the trade will initially target 1.2534 with a stop-loss activated on a daily close above 1.2886.
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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.