EUR/USD Technical Analysis: Further Euro Gains Expected
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- EUR/USD Technical Strategy: Flat
- Support: 1.1444, 1.1275, 1.1096
- Resistance:1.1659, 1.1832, 1.2006
The Euro turned higher against the US Dollar as expected after putting in a bullish Morning Star candlestick pattern. A daily close the 38.2% Fibonacci retracement at 1.1659 exposes the 50% level at 1.1832. Alternatively, a reversal below the 23.6% Fib at 1444 opens the door for a challenge of falling trend line resistance-turned-support at 1.1275.
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.