EUR/USD Technical Analysis: Euro Recovery in the Cards?
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- EUR/USD Technical Strategy: Flat
- Support: 1.0461, 1.0246, 0.9997
- Resistance:1.0712, 1.0955, 1.1040
The Euro may be readying to turn higher against the US Dollar after prices put in a bullish Morning Star candlestick pattern. Near-term resistance is at 1.0712, the March 31 low, with a break above that on a daily closing basis exposing a recently broken rising trend line at 1.0955. Alternatively, a reversal below the 1.0456-1.0554 area (March 16 low, 50% Fibonacci expansion) clears the way for a test of the 38.2% level at 1.0246.
We see the Euro trend as broadly bearish, in line with our long-term outlook. As such, we will approach on-coming gains as corrective in the context of a larger structural decline and position for opportunities to enter short after the move higher is exhausted. In the meantime, we 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.