EUR/USD Technical Analysis: December Lows Under Pressure
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- EUR/USD Technical Strategy: Flat
- Support: 1.2246, 1.2173, 1.2080
- Resistance:1.2324, 1.2418, 1.2569
The Euro continued downward for a second day against the US Dollar, with prices now threatening December’s swing bottom. Near-term support is at 1.2246-49, the December 8 low and the 50% Fibonacci expansion, with a break below that exposing the 61.8% level at 1.2173. Alternatively, a reversal above the 38.2% Fib at 1.2324 clears the way for a test of the 23.6% expansion at 1.2418.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.