EUR/USD Technical Analysis: Looking to Sell on Bounce
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- EUR/USD Technical Strategy: Pending Short at 1.2710
- Support: 1.2500, 1.2316, 1.2140
- Resistance:1.2749, 1.2852, 1.3070
The Euro looks to be resuming the down trend against the US Dollar after correcting upward from the 1.25 figure. Near-term support is in the 1.2500-34 area, marked by the October 3 low and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 1.2316. Alternatively, a reversal above channel support-turned-resistance at 1.2749 opens the door for a test of the 23.6% Fib retracement at 1.2852.
Risk/reward conditions are skewed against entering short at present and we will set a pending order to sell the pair in line with our long-term fundamental outlook at 1.2710. If triggered, the position 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