EUR/USD Technical Analysis: Corrective Bounce Seen Ahead
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- EUR/USD Technical Strategy: Flat
- Support: 1.1206, 1.1074, 1.0859
- Resistance:1.1339, 1.1444, 1.1659
The Euro may be preparing correct upward against the US Dollar after putting in a bullish Morning Star candlestick pattern. A daily close above falling trend line resistance at 1.1339 exposes the 23.6% Fibonacci retracement at 1.1444. Alternatively, a reversal below the 14.6% Fib expansion at 1.1206 opens the door for a challenge of the 23.6% threshold at 1.1074.
Our fundamental outlook calls for broad-based Euro weakness as the ECB introduces aggressive stimulus expansion. With that in mind, we will treat any on-coming gains as an opportunity to enter short rather than a long trade setup. In the meantime, we remain flat.
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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.