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EUR/USD Technical Analysis: Looking to Short on Bounce

EUR/USD Technical Analysis: Looking to Short on Bounce

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Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro Selloff Pauses Above 1.06 Figure After Prices Hit Seven-Month Low vs. US Dollar
  • Waiting for Short Entry Opportunity as Positive RSI Divergence Hints at Bounce Ahead

The Euro stalled above the 1.0600 figure against the US Dollar having dropped to the lowest level in seven months against the US Dollar, snapping a three-day losing streak. Positive RSI divergence continues to point to weakening selling pressure and hints a rebound may be ahead.

Near-term resistance is at1.0821, the 14.6% Fibonacci expansion,with a break above that on a daily closing basis aiming for a retest of double bottom support-turned-resistance at 1.0818. Alternatively, a move downward that takes prices through the 23.6% Fib at 1.0637opens the door for a challenge of the 38.2% level at 1.0517.

We continue to see the overall trend bias as favoring the downside. With that in mind, we will look to any upswing from here as corrective and wait for the move to offer a selling opportunity once bullish momentum is exhausted. In the meantime, we remain flat.

Losing Money Trading Forex? This Might Be Why.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.