EUR/USD Technical Analysis: Candle Setup Hints at Bounce
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- EUR/USD Technical Strategy: Flat
- Support: 1.0461, 1.0246, 0.9997
- Resistance:1.0712, 1.0930, 1.1040
The Euro put in a bullish Morning Star candlestick pattern, hinting a move higher against the US Dollar may be ahead. A daily close above support-turned-resistance at 1.0712, the March 31 low, exposes a recently broken rising trend line at 1.0930. Alternatively, a move below the 1.0456-1.0554 area (March 16 low, 50% Fibonacci expansion) opens the door for a challenge of the 38.2% level at 1.0246.
Our long-term outlook calls for broad-based Euro weakness. With that in mind, we will treat any on-coming gains as corrective in the context of a larger structural decline and look for opportunities to enter short after upward momentum has been exhausted.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com