EUR/USD Technical Analysis: Down Trend Back in Play?
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2374, 1.2312, 1.2249
- Resistance:1.2451, 1.2559, 1.2621
The Euro may be readying to turn lower anew against the US Dollar following the formation of a Bearish Engulfing candlestick pattern. A narrow close below 23.6% Fibonacci expansion at 1.2451 appears to have exposed the 38.2% level at 1.2374, with a further drop below that targeting the 50% Fib at 1.2312. Alternatively, a bounce back above 1.2451 clears the way for a challenge of the 38.2% Fib retracement at 1.2559.
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