EUR/USD Technical Analysis: Treading Water Below 1.25
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2428, 1.2286, 1.2145
- Resistance:1.2603, 1.2703, 1.2886
The Euro is consolidating losses against the US Dollar after prices plunged below the 1.2500 figure. Near-term support is at 1.2428, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.2286. Alternatively, a reversal above the 23.6% Fib at 1.2603 clears the way for a challenge of trend line resistance at 1.2703.
We entered short EURUSD at 1.2710 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest of the trade remains open to capture any further downside momentum with a stop-loss at breakeven (1.2710).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com