EUR/USD Technical Analysis: Waiting to Re-Enter Short Trade
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- EUR/USD Technical Strategy: Flat
- Support: 1.2362, 1.2246, 1.2147
- 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 1.2362 opens the door for a challenge of the December 8 low at 1.2246.
Our long-term fundamental outlook calls for EURUSD weakness. With that in mind, we will treat any oncoming gains as corrective and use the move to look for selling opportunities rather than a long trade setup in its own right.
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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.