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Talking Points:
- EUR/USD Technical Strategy: Flat
- Support: 1.0456, 1.0233, 0.9984
- Resistance:1.0955, 1.1263, 1.1513
The Euro moved higher against the US Dollar as expected after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0955, the intersection of a falling trend line and the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 1.1263. Alternatively, a reversal below the 1.0456-541 area (March 16 low, the 23.6% Fib expansion) opens the door for a challenge of the 38.2% threshold at 1.0233.
Our long-term outlook envisions Euro weakness. With that in mind, we will treat any on-coming upswing as corrective and look to enter short once signs of a renewed turn lower emerge. In the meantime, we will remain on the sidelines.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
