EUR/USD Technical Analysis: Euro Rebound in the Works?
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- EUR/USD Technical Strategy: Short at 1.1207
- Euro finds support above 1.11 figure, hints at possible rebound ahead
- Short trade still in play, looking for selloff to resume on US jobs data
The Euro is attempting to carve out an interim bottom against the US Dollar having declined as expected following the appearance of a bearish Harami candlestick. Prices have now formed a bullish Morning Star setup, hinting a rebound might be in the cards.
Near-term resistance is at 1.1200, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 14.6% level at 1.1263. Alternatively, a reversal below the 38.2% Fib at 1.1097 paves the way for a challenge of the 50% expansion at 1.1014.
A short EUR/USD trade was activated at 1.1207, initially targeting 1.1097. The Morning Star setup remains unconfirmed for now and the upcoming US jobs report may reboot the down trend. With that in mind, the position will remain in play.A stop-loss will be triggered on a daily close above 1.1263.
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