EUR/USD Technical Analysis: Looking for Upside Breakout

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1206, 1.1074, 1.0859
• Resistance:1.1380, 1.1444, 1.1659

The Euro may be readying to turn upward against the US Dollar after producing a bullish Morning Star candlestick pattern. Near-term rising trend line resistance is at 1.1380, with a break above that on a daily closing basis exposing the 23.6% Fibonacci retracement at 1.1444. Alternatively, a turn below the 14.6% Fib expansion at 1.1206 clears the way for a test of the 23.6% threshold at 1.1074.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

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