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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/USD Technical Analysis: Holding Short Through Upswing

EUR/USD Technical Analysis: Holding Short Through Upswing

Ilya Spivak,

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

Talking Points:

  • EUR/USD Technical Strategy: Short at 1.1037
  • Euro finds interim support, posts largest daily advance in a month vs. US Dollar
  • Holding short position, expecting down trend to resume after corrective bounce

The Euro mounted a sharp recovery against the US Dollar, producing the largest daily advance in close to a month. The near-term down trend established in early February remains intact however, painting gains as corrective (at least for the time being).

A daily close above 1.0956 – the intersection of trend line support-turned-resistance and the 23.6% Fibonacci retracement – opens the door for a test of the 38.2% level at 1.1036. Alternatively, a reversal below the 38.2% Fib expansion at 1.0908 paves the way for a challenge of the 50% threshold at 1.0859.

We sold EUR/USD at 1.1037 and subsequently booked profit on half of the position after the trade hit its first objective. We will continue holding short here, looking for the dominant down trend to resume. The stop-loss has been adjusted to the breakeven level.

Has the Euro matched DailyFX expectations so far in 2016? See our Q1 forecast to find out!

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