EUR/USD Technical Analysis: 1.12 Breaks Despite Down Gap
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- EUR/USD Technical Strategy: Flat
- Support: 1.1188, 1.1098, 1.1043
- Resistance:1.1261, 1.1334, 1.1424
The Euro gapped sharply lower against the US Dollarbut a swift intraday recovery brought prices back above the 1.12 figure. Near-term resistance is at 1.1261, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.1334. Alternatively, a reversal below the 38.2% Fib at 1.1188 clears the way for a test of the 23.6% expansion at 1.1098.
The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.