EUR/USD Technical Analysis: Breakout Intact After Pullback

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Talking Points:

• EUR/USD Technical Strategy: Flat
• Support: 1.1047, 1.0955, 1.0899
• Resistance:1.1121, 1.1195, 1.1287

The Euro corrected modestly lower after an apparent upside breakout marked by a push through falling trend line set from mid-June. A daily close above the 50% Fibonacci retracementat 1.1121 exposes the 61.8% level at 1.1195. Alternatively, a reversal back below the 38.2% Fib at 1.1047 opens the door for a challenge of the 23.6% retracement at 1.0955.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade in line with our long-term outlook from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.

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