EUR/USD Technical Analysis: Support Now Below 1.05 Mark
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- EUR/USD Technical Strategy: Flat
- Support: 1.0408, 1.0060, 0.9713
- Resistance:1.0623, 1.0796, 1.0970
The Euro looks poised to descend below the 1.05 figure against the US Dollar having cleared yet another downside chart threshold. Near-term support is at 1.0408, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 1.0060. Alternatively, a turn above the 61.8% Fib at 1.0623 opens the door for a challenge of the 50% expansion at 1.0796.
While entering short in line with our long-term outlook seems compelling from a purely technical perspective, we will tactically opt pass for now. We already hold significant short-EUR exposure via EURJPY and EURGBP and as well as long-USD positions via AUDUSD and GBPUSD. With that in mind, we will stand aside to avoid over-committing to overlapping themes and wait for another opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com