EUR/USD Technical Analysis: Euro Bounce Hinted Ahead
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- EUR/USD Technical Strategy: Flat
- Support: 1.1516, 1.1416, 1.1254
- Resistance:1.1620, 1.1720, 1.1882
The Euro may see a recovery against the US Dollar after prices put in a Bullish Engulfing candlestick pattern. Near-term resistance is at 1.1620, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.1720. Alternatively, a reversal below the 14.6% Fib expansion at 1.1516 clears the way for a test of the 23.6% threshold at 1.1416.
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.
NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk
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.