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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Technical Analysis: Euro Drops Most in 3 Weeks

EUR/USD Technical Analysis: Euro Drops Most in 3 Weeks

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro drops most in 3 weeks after finding resistance above 1.16 figure
  • Adverse risk/reward setup, looming event risk warn against short trade

The Euro turned lower against the US Dollar as expected, with prices producing the largest daily decline in three weeks. The move lower followed the appearance of a Shooting Star candlestick pattern after the pair found resistance above the 1.16 figure.

From here, a daily close below the 23.6% Fibonacci retracement at 1.1357 opens the door for a challenge of the 38.2% level at 1.1196. Alternatively, a reversal back above support-turned-resistance at 1.1456, the 14.6% Fib, paves the way for a test of the May 3 high at 1.1616.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. Furthermore, on-coming US jobs data represents pivotal event risk that may materially alter technical positioning. With that in mind, we will remain on the sidelines for the time being.

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

EUR/USD Technical Analysis: Euro Drops Most in 3 Weeks

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

DISCLOSURES