EUR/USD Technical Analysis: Euro Drops Most in 2 Weeks
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2360, 1.2213, 1.1974
- Resistance:1.2479, 1.2599, 1.2770
The Euro looks to be resuming its down trend against the US Dollar as expected after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.2360, 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.2213. Alternatively, a turn above falling trend line resistance at 1.2479 clears the way for a test of the November 19 high at 1.2599.
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
--- 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.