EUR/USD Technical Analysis: Waiting to Sell on Rebound
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/USD Technical Strategy: Flat
- Euro Extends Decline But RSI Divergence, Falling Wedge Setup Hint at Reversal Ahead
- Looking to Enter Short in Line with Long-Term Trend Following Corrective Recovery
The Euro edged lower for a fourth consecutive day against the US Dollar, building on last week’s breach of the 1.06 figure to hit a seven-month low. Positive RSI divergence and the formation of a Falling Wedge chart pattern hint that a reversal to the upside may be brewing ahead however.
A daily close below support at 1.0556, the 23.6% Fibonacci expansion, opens the door for a descent to a major inflection point in the 1.0428-61 area marked by the March 13 low and the 38.2% level. Alternatively, a move back above support-turned-resistance at 1.0635, the 14.6% expansion, sees the next upside barrier in the 1.0779-1.0818 zone (23.6% Fib retracement, May 26 low).
We are keen to enter short EUR/USD in line with the long-term down trend. With that in mind, we will treat any on-coming advance as corrective, looking to the move as an opportunity to sell the pair at more attractive levels. 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.