EUR/USD Technical Analysis: Seeking Short Trade Opening
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- EUR/USD Technical Strategy: Flat
- Support: 1.0888, 1.0814, 1.0740
- Resistance:1.0980, 1.1036, 1.1128
The Euro extended downward against the US Dollar as expected after prices produced a bearish Evening Star candlestick pattern. A daily close below the 38.2% Fibonacci expansionat 1.0888 exposes the 1.0814-18 area (50% level, May 27 low). Alternatively, a move above the 23.6% Fib at 1.0980 opens the door for a challenge of the 14.6% expansion at 1.1036.
Prices are too close to support to justify entering short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.