EUR/USD Technical Analysis: Bounce to Yield Short Entry
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- EUR/USD Technical Strategy: Flat
- Support:1.1558, 1.1462, 1.1366
- Resistance:1.1620, 1.1720, 1.1882
The Euro may be readying to launch a recovery against the US Dollar after prices put in a bullish Piercing Line candlestick pattern. A daily close above the 14.6% Fibonacci retracement at 1.1620 exposes the 23.6% level at 1.1720. Alternatively, a turn below the 38.2% Fib expansion at 1.1558 opens the door for a challenge of the 50% threshold at 1.1462.
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.