EUR/USD Technical Analysis: Euro Drops Most in 3 Months

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Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1320, 1.1202, 1.1055
• Resistance:1.1439, 1.1586, 1.1823

The Euro turned sharply lower against the US Dollar, producing the largest daily decline in three months. A daily close below the 50% Fibonacci expansion at 1.1111 exposes the 61.8% level at 1.1035. Alternatively, a turn above the 38.2% Fib at 1.1188 opens the door for a challenge of the 23.6% expansion at 1.1282.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now and wait for an actionable opportunity to present itself.

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