EUR/USD Technical Analysis: Resistance Now Above 1.12
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- EUR/USD Technical Strategy: Flat
- Support: 1.1040, 1.0712, 1.0461
- Resistance:1.1266, 1.1515, 1.1764
The Euro continues to push higher against the US Dollar having reversed as expected after showing a bullish Morning Star candlestick pattern. Near-term resistance is at 1.1266, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 1.1515. Alternatively, a move back below the 1.0959-1.1040 area (23.6% Fib, March 18 high) clears the way for a test of the March 31 low at 1.0712.
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