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Talking Points:
- EUR/USD Technical Strategy: Flat
- Support: 12397, 1.2246, 1.2142
- Resistance:1.2501, 1.2658, 1.2913
The Euro broke out upward from a Falling Wedge chart formation as expected after showing a bullish Morning Star candlestick pattern. Near-term resistance is at 1.2501, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.2658. Alternatively, a reversal below wedge top resistance-turned-support at 1.2397 clears the way for a test of the December 8 low at 1.2246.
We sold EURUSD at 1.2710 in line with our long-term fundamental outlook subsequently booked profit on half of the position. We have now booked profit on the remainder of the position and will continue to stand aside until a corrective pullback offers another buying opportunity in the days ahead.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
