EUR/USD Technical Analysis: Euro Ready to Reverse Upward?
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2279, 1.2213, 1.1974
- Resistance:1.2455, 1.2529, 1.2683
The Euro may have established an interim bottom against the US Dollar after prices completed a bullish Piercing Line candlestick pattern. Near-term trend line resistance is at 1.2455, with a break above that on a daily closing basis exposing the 14.6% Fibonacci retracement at 1.2529. Alternatively, a turn below the December 4 low at 1.2279 clears the way for a test the 23.6% Fib expansion 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
--- 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.