EUR/USD Technical Analysis: Ready to Resume Down Trend?
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- EUR/USD Technical Strategy: Flat
- Support: 1.1040, 1.0955, 1.0852
- Resistance:1.1185, 1.1263, 1.1359
The Euro may be readying to resume its down trend against the US Dollar following the formation of a bearish Three Inside Down candlestick pattern. Near-term support is in the 1.1040-96 area, with a break below that on a daily closing basis exposing the 50% Fibonacci retracement at 1.0955. Alternatively, a reversal above the 23.6% level at 1.1185 clears the way for a test of the 14.6% retracement at 1.1263.
The available trading range is too narrow to justify entering short in line with our long-term outlook.With that in mind, we will remain on the sidelines for the time being and wait for a more actionable trading opportunity to present itself.
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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.