EUR/USD Technical Analysis: Bottoming Above 1.23 Figure?
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2352, 1.2299, 1.2234
- Resistance:1.2482, 1.2559, 1.2621
The Euro may be on the verge of a turn higher against the US Dollar following the emergence of a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.2482, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 1.2559. Alternatively, a turn below the 50% Fib expansion at 1.2352 clears the way for a challenge of the 61.8% threshold at 1.2299.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.