EUR/USD Technical Analysis: Passing on Short for Now
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- EUR/USD Technical Strategy: Flat
- Support: 1.1254, 1.1123, 1.0992
- Resistance:1.1416, 1.1516, 1.1679
The Euro renewed its push downward against the US Dollar, issuing the largest daily decline since August 2010. A daily close below the 38.2% Fibonacci expansion at 1.1254 exposes the 50% level at 1.1123. Alternatively, a turn above the 23.6% Fib at 1.1416 opens the door for a challenge of the 14.6% threshold at 1.1516.
While entering short in line with our long-term outlook seems compelling, the appearance of positive RSI divergence warns of ebbing downside momentum. Furthermore, the upcoming Greek election represents high-profile volatility risk that may derail technical positioning. With that in mind, we will remain flat for now.
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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.