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EUR/USD Technical Analysis: Short Position Now in Play

EUR/USD Technical Analysis: Short Position Now in Play

2015-05-04 22:26:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • 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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EUR/USD Technical Analysis: Short Position Now in Play

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.

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