EUR/USD Technical Analysis: Euro Declines for Sixth Day
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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 declined for a sixth consecutive day against the US Dollar, sinking to a new 11-year low. Near-term support is at 1.0970, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.0796. Alternatively, a turn above the 23.6% Fib at 1.1185 opens the door for a challenge of the 1.1276-1318 area (January 30 close, 14.6% Fib expansion).
Prices are too close to support to justify entering short in line with our long-term outlook from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.