EUR/USD Technical Analysis: Resistance Now Above 1.13

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Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1247, 1.1178, 1.1040
• Resistance:1.1359, 1.1450, 1.1541

The Euro continued to recover against the US Dollar after a brief pause to consolidate, with buyers securing a foothold above the 1.13 figure. Near-term resistance is at 1.1359, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.4501. Alternatively, a reversal below the 23.6% Fib at 1.1247 clears the way for a test of the 14.6% expansion at 1.1178.

Our EURUSD short position from at 1.1148 was stopped out on yesterday’s close above 1.1289. From here, the absence of a defined bearish reversal signal suggests taking up the short side in line with our long-term outlook is premature. As such, we will remain flat for now.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com