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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro remains locked in narrow range below 1.15 figure vs. US Dollar
- Negative RSI divergence hints bearish reversal may be brewing ahead
The Euro continues to consolidate in a narrow range after hitting the highest level since mid-October 2015 against the US Dollar. Early signs of negative RSI divergence hint upside momentum may be fading, which could pave the way for bearish reversal.
A daily close below the 1.1353-76area, marked by the 61.8% Fibonacci expansion and the February 11 high, exposes the 50% level at 1.1252. Alternatively, a push above the 1.1478-95 zone (76.4% Fib, October 15 high) paves the way for a challenge of the 1.1681-1714 region (100% Fib, August 24 high).
We are aiming to enter short EUR/USD in line with our 2016 fundamental outlook. An actionable trade setup is absent for the time being however. We will continue to stand aside for now, waiting for signs of bearish reversal confirmation to enter a position.
What do DailyFX analysts expect from the Euro in 2Q? Find out here !
