EUR/USD Technical Analysis: Euro at Pivotal Chart Threshold

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Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1875, 1.1777, 1.1684
• Resistance:1.2080, 1.2173, 1.2249

The Euro finds itself at a pivotal threshold against the US Dollar as prices probe below a major five-year low. Near-term support is in the 1.1875-1.1929 area, marked by the June 2010 low and the 100% Fibonacci expansion, with a break below that on a daily closing basis exposing the 123.6% level at 1.1777. Alternatively, a reversal above the 76.4% Fib at 1.2080 clears the way for a test of the 61.8% expansion at 1.2173.

Risk/reward considerations argue against entering short with prices in close proximity to support. With that in mind, we will remain on the sidelines for now an attractive selling opportunity in line with our long-term outlook presents itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com