EUR/USD Technical Analysis: Pivotal Resistance Pressured
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- EUR/USD Technical Strategy: Flat
- Euro rises to challenge trend-defining former support set from mid-March
- Waiting for reversal confirmation to enter short in line with long-term bias
The Euro finds itself at trend-definingtechnical resistance after rising to the highest level in four months against the US Dollar. Prices are testing rising trend line support-turned-resistance set from mid-March, with behavior at this juncture potentially defining for trend development in the weeks and months ahead.
A daily close above the intersection of the trend line and the 50% Fibonacci expansion at 1.1354 opens the door for a test of the 61.8% level at 1.1417. Alternatively, a reversal below the 38.2% Fib at 1.1291 paves the way for a challenge of the 23.6% expansion at 1.1213.
We are keen to enter short EUR/USD in line with our 2016 fundamental outlook. An actionable bearish reversal signal is absent for now however, warning that pulling the trigger on a trade is premature. With that in mind, we will remain on the sidelines for now and wait for further confirmation.
How are FXCM traders positioned in the Euro? Find out here.
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