EUR/USD Technical Analysis: Still Waiting for Direction Cues
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- EUR/USD Technical Strategy: Flat
- Support: 1.1202, 1.1055, 1.0965
- Resistance:1.1320, 1.1439, 1.1585
The Euro moved higher against the US Dollar as expected having produced a bullish Morning Star candlestick pattern. Near-term resistance is at 1.1320, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.1439. Alternatively, a reversal below the 38.2% Fib at 1.1202 clears the way for a test of the 1.1005-55 area (23.6% expansion, horizontal pivot).
Our long-term Euro outlook favors weakness against the US Dollar. As such, we will treat the advance as corrective in the context of the structural, multi-year down move and look to enter short once an attractive opportunity presents itself. In the meantime, we remain flat.
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--- 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.