EUR/USD Technical Analysis: Short Trade Making Progress
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2500, 1.2316, 1.2140
- Resistance:1.2759, 1.2852, 1.3070
The Euro looks to be resuming its down trend resumption following the completion of a Flag chart formation. Near-term support is in the 1.2500-34 area, marked by the October 3 low and the 23.6% Fibonacci expansion, with a daily close below that exposing the 38.2% level at 1.2316. Alternatively, a reversal above trend line resistance at 1.2759 opens the door for a test of the 23.6% Fib retracement at 1.2852.
We sold EURUSD at 1.2710 in line with our long-term fundamental outlook, initially aiming for 1.2534. A stop-loss will be activated on a daily close above 1.2886. Profits will be taken on half of the trade the stop-loss moved to breakeven after prices hit the first target.
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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.