EUR/USD Technical Analysis: Critical Resistance Holds Up
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- EUR/USD Technical Strategy: Flat
- Euro recoils from support-turned-resistance at trend line from mid-March
- Seeking actionable short trade setup in line with dominant long-term trend
The Euro retreated against the US Dollar after testing pivotal trend line support-turned-resistance set from mid-March. A lasting downturn from here would serve to confirm that gains from early December 2015 were corrective in the context of a longer-term down move rather than the start of a new trend.
Near-term support is at 1.1094, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 38.2% level at 1.0919. Alternatively, a reversal above the 14.6% Fib at 1.1201 paves the way for a challenge of the February 11 high at 1.1376.
Prices are too close to support to justify entering a short position in line with the long-term trend and our 2016 fundamental outlook. We will remain on the sidelines for the time being, waiting for positioning to offer a more attractive opportunity to sell the pair.
How are FXCM traders positioned in the Euro? Find out here.
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