EUR/USD Technical Analysis: Short Trade Setup Sought
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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 remains in digestion mode after bottoming as expected against the US Dollar following the appearance of a bullish Morning Star candle pattern. A daily close above the February 3 high at 1.1533 exposes the 38.2% Fibonacci retracement at 1.1659. Alternatively, a reversal below the 14.6% Fib expansion at 1.1318 opens the door for a challenge of the 23.6% threshold at 1.1185.
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.