EUR/USD Technical Analysis: Move Below 1.10 in the Cards?

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Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1123, 1.0992, 1.0830
• Resistance:1.1254, 1.1416, 1.1516

The Euro is working on clearing a path below the 1.10 figure against the US Dollar as prices dip to levels untouched since September 2003. Near-term support is at 1.1123, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 1.0992. Alternatively, a reversal above the 38.2% Fib at 1.1254 clears the way for a test of the 23.6% expansion at 1.1416.

Risk/reward considerations argue against entering short in line with our long-term outlook with prices in close proximity to support. We will remain flat for now, waiting for a more actionable opportunity to present itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com