EUR/USD Technical Analysis: Further Euro Gains Expected
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- EUR/USD Technical Strategy: Flat
- Support: 1.1318, 1.1185, 1.0970
- Resistance:1.1533, 1.1659, 1.1832
The Euro pulled back after rebounding against the US Dollar as expected following the formation of a bullish Morning Star candlestick pattern. Near-term support is at 1.1318, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 1.1185. Alternatively, a push below the February 3 high at 1.1533 clears the way for a test of the 38.2% Fib retracement at 1.1659.
An actionable trade setup is absent at this point. On one hand, prices are too close to support to enter short from a risk/reward perspective. On the other, our fundamental outlook calls for broad-based Euro weakness and we prefer to treat any oncoming gains as an opportunity to short rather than a stand-alone long-trade setup. With that in mind, we remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com