EUR/USD Technical Analysis: Euro Pops to One-Month High
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- EUR/USD Technical Strategy: Flat
- Support: 1.2491, 1.2397, 1.2340
- Resistance:1.2566, 1.2642, 1.2735
The Euro advanced against the US Dollar as expected having completed a bullish Morning Star candlestick pattern. Near-term resistance is at 1.2566, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 1.2642. Alternatively, a reversal below the 38.2% Fib at 1.2491 clears the way for a test of the 23.6% retracement at 1.2397.
Our long-term outlook calls for a broadly stronger US Dollar against its key counterparts. With that in mind, we will treat the ongoing EURUSD bounce as a chance to get short at more attractive levels once a clear-cut trade setup presents itself rather than a buying opportunity.
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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.