EUR/USD Technical Analysis: Candle Setup Points to Bounce
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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 preparing to launch a recovery against the US Dollar after prices put in a bullish Piercing Line candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 1.2482 exposes the 38.2% level at 1.2559. Alternatively, a reversal below the 50% Fib expansion at 1.2352 opens the door for a test of the 61.8% threshold at 1.2299.
We sold EURUSD at 1.2710 in line with our long-term fundamental outlook subsequently booked profit on half of the position. The remainder of the trade is open to capture any further downside momentum with a stop-loss trailed to breakeven (1.2710).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com