Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
EUR/USD Technical Analysis: Short Trade Entered Above 1.09

EUR/USD Technical Analysis: Short Trade Entered Above 1.09

Ilya Spivak,

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Short at 1.0921
  • Euro Struggling to Break Channel Top Resistance Despite Recent Risk Aversion
  • Short Position Triggered Above 1.09 Figure, Looking for Down Trend Resumption

The Euro is struggling to rise against the US Dollar, with multiple attempts to build upside momentum cut short at channel top resistance. The recent standstill has materialized against a backdrop of risk aversion that might have been expected to drive the pair higher amid liquidation of EUR-funded carry trades.

A reversal below the horizontal pivot at 1.0819 initially exposes the 1.0686-1.0711 area (January 5 low, 38.2% Fibonacci expansion). Alternatively, a daily close above channel top resistance – now at 1.0913 – paves the way for a challenge of the December 15 high at 1.1060.

The single currency’s inability to find support in risk-off trade seems telling and we will now attempt to enter short EUR/USD, initially targeting 1.0819. A stop-loss will be activated on a daily close above 1.0940. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is met.

Losing Money Trading Forex? This Might Be Why.

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

DISCLOSURES