EUR/USD Technical Analysis: Euro Downtrend Resuming?
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- EUR/USD Technical Strategy: Flat
- Support: 1.0807, 1.0712, 1.0640
- Resistance:1.1040, 1.1122, 1.1279
The Euro put in a bearish Dark Cloud Cover candlestick pattern, hinting the down trend against the US Dollar may be about to resume. A daily close below trend line support at 1.0807 exposes the March 31 low at 1.0712. Alternatively, a push above the 1.0995-1.1040 area (50% level, March 18 high) clears the way for a test of the 61.8% Fib at 1.1122.
Prices’ proximity to support argues against entering short in line with our long-term outlook from a risk/reward perspective. Furthermore, the upcoming release of minutes from the March FOMC meeting represents pivotal event risk that may materially alter positioning. With that in mind, we will remain flat.
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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.