EUR/USD Technical Analysis: November Bottom Under Fire
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2360, 1.2213, 1.1974
- Resistance:1.2549, 1.2599, 1.2770
The Euro may have resumed its longer-term decline against the US Dollar after prices completed a Flag continuation chart pattern last week. A daily close below the 14.6% Fibonacci expansionat 1.2360 exposes the 23.6% level at 1.2213. Alternatively, a reversal above falling trend line resistance at 1.2549opens the door for a test of the November 19 high at 1.2599.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.