EUR/USD Technical Analysis: Down Trend Resumption Hinted
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2360, 1.2213, 1.1974
- Resistance:1.2488, 1.2599, 1.2770
The Euro may be readying a resumption of its down trend against the US Dollar after prices produced a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci expansion at 1.2360 exposes the 23.6% level at 1.2213. Alternatively, a reversal above falling trend line resistance at 1.2488 opens the door for a challenge 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).
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.