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Talking Points:
- EUR/USD Technical Strategy: Flat
- Support: 1.1777, 1.1684, 1.1609
- Resistance:1.1929, 1.2080, 1.2173
The Euro may be preparing to turn higher against the US Dollar after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 1.1872, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.1946. Alternatively, a reversal below the 123.6% Fib expansion at 1.1777 clears the way for a test of the 138.2% threshold at 1.1684.
We expect any on-coming EURUSD strength to be corrective, in line with our long-term outlook. With that in mind, we will treat upside momentum as an opportunity to enter short at a more attractive level and remain on the sidelines in the interim.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
