EUR/USD Technical Analysis: Short Position Now in Play
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- EUR/USD Technical Strategy: Short at 1.1148
- Support: 1.0982, 1.0793, 1.0487
- Resistance:1.1271, 1.1517, 1.1766
The Euro put in a bearish Evening Star candlestick pattern, hinting a move lower against the US Dollar may be in the cards. A daily close below the 14.6% Fibonacci expansion at 1.0982 exposes the 23.6% level at 1.0793. Alternatively, a push above the 38.2% Fib retracement at 1.1271 opens the door for a challenge of the 50% threshold at 1.1519.
While we continue to see the risk of a broader US Dollar pullback, technical and risk/reward parameters make a short position in line with our long-term outlook too tempting to pass up. We will now sell the pair, initially targeting 1.0982. A stop-loss will be activated on a daily close above 1.1289. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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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.