EUR/USD Technical Analysis: Euro Bounce May Yet Happen
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- EUR/USD Technical Strategy: Flat
- Support: 1.1751, 1.1677, 1.1558
- Resistance:1.1870, 1.2041, 1.2246
The Euro looks to have overturned bullish cues noted earlier in the week but positive RSI divergence warns a rebound may yet materialize. A daily close below the 14.6% Fibonacci expansion at 1.1751 exposes the 23.6% level at 1.1677. Alternatively, a turn above the January 12 high at 1.1870 opens the door for a challenge of support-turned-resistance marked by the July 2012 low at 1.2041.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.