EUR/USD Technical Analysis: Down Trend Back in Play?
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2360, 1.2213, 1.1974
- Resistance:1.2501, 1.2599, 1.2770
The Euro may have resumed the down trend against the US Dollar following the appearance of a Bearish Engulfing candlestick pattern. Near-term resistance is at 1.2501, a falling trend line set from mid-October, with a break above that on a daily closing basis exposing the November 19 high at 1.2599. Alternatively, a turn below the 14.6% Fibonacci expansion at 1.2360 clears the way for a challenge of the 23.6% level at 1.2213.
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.