EUR/USD Technical Analysis: Euro Digesting Upward Break
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- EUR/USD Technical Strategy: Flat
- Support: 1.2384, 1.2246, 1.2144
- Resistance:1.2501, 1.2658, 1.2913
The Euro paused to consolidate gains having reversed higher as expected after putting in a bullish Morning Star candlestick pattern. A daily close above the 14.6% Fibonacci retracementat 1.2501 exposes the 23.6% level at 1.2658. Alternatively, a turn below wedge top resistance-turned-support at 1.2384 opens the door for a challenge of the December 8 low at 1.2246.
Current positioning does not offer an actionable trade setup. Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of an immediate bullish reversal signal suggests taking up the long side is premature.
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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.