EUR/USD Technical Analysis: Perched at 5-Month Support
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- EUR/USD Technical Strategy: Flat
- Support: 1.0860, 1.0814, 1.0740
- Resistance: 1.0980, 1.1037, 1.1128
The Euro remains perched atop five-month trend line support against the US Dollar as prices await direction cues. Near-term support is in the 1.0860-88 area (trend line, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 1.0814-18 zone (50% level, May 27 low). Alternatively, a push above the 23.6% Fib at 1.0980 clears the way for a challenge of the 14.6% expansion at 1.1037.
Risk/reward considerations argue against entering shortin line with our long-term outlookwith prices in close proximity to support. 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.