EUR/USD Technical Analysis: Bottom in Place Above 1.16?
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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 may be carving out a bottom against the US Dollar as positive RSI divergence warns of ebbing downside momentum. Near-term resistance is at 1.1870, the January 12 high, with a break above that on a daily closing high exposing support-turned-resistance marked by the July 2012 low at 1.2041.Alternatively, a reversal below the 14.6% Fibonacci expansion at 1.1751 clears the way for a test of the 23.6% level at 1.1677.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.