EUR/USD Technical Analysis: Bounce Sought to Enter Short
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- EUR/USD Technical Strategy: Flat
- Support: 1.0796, 1.0623, 1.0408
- Resistance:1.0970, 1.1185, 1.1318
The Euro put in an Inverted Hammer candlestick, hinting an upside correction against the US Dollar may be in the cards. Near-term resistance is at 1.0970the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 1.1185. Alternatively, a turn below the 50% Fibat 1.0796 opens the door for a challenge of the 61.8% expansion at 1.0623.
Prices are too close to support to justify entering short in line with our long-term outlookfrom a risk/reward perspective. With that in mind, we will wait for a corrective upswing to look for opportunities to establish a short position in the days ahead.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com