EUR/USD Technical Analysis: Euro Slumps to 11-Year Low
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- EUR/USD Technical Strategy: Flat
- Support: 1.0970, 1.0796, 1.0623
- Resistance:1.1185, 1.1318, 1.1533
The Euro moved sharply lower against the US Dollar, with prices descending to the lowest level in over 11 years. A daily close below the 38.2% Fibonacci expansionat 1.0970 exposes the 50% level at 1.0796. Alternatively, a reversal above the 23.6% Fib at 1.1185 clears the way for a test of the 1.1276-1318 area (January 30 close, 14.6% Fib expansion).
Entering short in line with our long-term outlook seems compelling from a purely technical perspective but will tactically opt to stay flat. The upcoming US Employment report represents major event risk for USD-based pairs that may derail technical positioning. As such, we will wait for event risk to pass before establishing new exposure.
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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.