EUR/USD Technical Analysis: Digesting Below 1-Month High
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- EUR/USD Technical Strategy: Flat
- Euro corrects lower after rising to one-month high vs. US Dollar
- Waiting for upswing to fizzle to sell in line with long-term down trend
The Euro edged lower for a third consecutive day as prices digest gains having advanced to the highest level in a month against the US Dollar. The series of higher highs and lows established from the March 2 swing low remains intact however, hinting the very near-term bias still favors the upside.
A daily close below the 14.6% Fibonacci expansion at 1.1202 opens the door for a test of the 23.6% level at 1.1094. Alternatively, a push above the February 11 high at 1.1376 sees the next upside barrier at 1.1495, the October 15 top.
We expect the long-term EUR/USD down trend to resume, in line with our 2016 fundamental forecast. That paints recent gains as broadly corrective, amounting to a selling opportunity. With that in mind, an actionable bearish reversal signal is absent for the time being. As such, we will remain on the sidelines for now.
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