EUR/USD Technical Analysis: Familiar Range Remains in Play
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- EUR/USD Technical Strategy: Flat
- Support: 1.1276, 1.1185, 1.0970
- Resistance:1.1533, 1.1659, 1.1832
The Euro continues to stall having carved out a bottom against the US Dollar as expected after showing a bullish Morning Star candle pattern. Near-term resistance is at 1.1533, the February 3 high, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 1.1659. Alternatively, a turn below the 1.1276-1318 area (January 30 close, 14.6% Fib expansion) clears the way for a test of the 23.6% threshold at 1.1185.
Our long-term fundamental outlook calls for broad-based Euro weakness as the ECB expands stimulus. With that in mind, we will treat on-coming gains as an opportunity to establish short following the upswing rather than a long trade setup. In the meantime, we will 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.