EUR/USD Technical Analysis: Euro Rise May Be Brewing
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- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2213, 1.1974, 1.1781
- Resistance:1.2386, 1.2431, 1.2599
The Euro may be building toward a recovery against the US Dollar as prices trace out a bullish Falling Wedge chart formation. Near-term resistance is in the 1.2360-86 area, marked by the 14.6% Fibonacci expansion and the November 21 close, with a break above that on a daily closing basis exposing the wedge top at 1.2431. Alternatively, a reversal below the 1.2213-34 zone (wedge floor, 23.6% level) clears the way for a test of the 38.2% Fib at 1.1974.
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.