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EUR/USD Technical Analysis: Short Position Now in Play

EUR/USD Technical Analysis: Short Position Now in Play

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Talking Points:

  • EUR/USD Technical Strategy: Short at 1.1390
  • Euro spikes toward 1.14 after ECB rate decision but fails to hold onto gains
  • Short position now in play, initially targeting support near April swing low

The Euro briefly spiked toward the 1.14 figure in the aftermath of the ECB monetary policy announcement but prices failed to maintain upside momentum. The currency’s inability to hold onto gains on what seemed like supportive fundamental news-flow may speak to significant underlying weakness.

A daily close above the 14.6% Fibonacci expansion at 1.1372 paves the way for a test of the 1.1457-65 area (23.6% level, April 12 high). Alternatively, a move below the 23.6% Fib retracement at 1.1241 opens the door for a challenge of the 38.2% barrier at 1.1103.

Our entry order to sell EUR/USD at 1.1390 has been triggered and we are now short, initially targeting1.1241. A stop-loss will be activated on a daily close above 1.1465. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is reached.

Are FXCM traders buying or selling the Euro? Find out here !

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