EUR/USD Technical Analysis: Near-Term Bias Remains Bearish
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- EUR/USD Technical Strategy: Short at 1.1207
- Euro bias remains bearish through prolonged congestion period
- Roll accumulation allows revision of first target to above 1.11 mark
The Euro has struggled to build lasting downside momentum after topping below the 1.14 figure as expected having formed a Harami candlestick pattern. An unbroken series of lower lows continues to suggest the near-term bias favors weakness however.
Near-term support is at 1.1200, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 1.1097-1.1123 area (August 31 low, 38.2% level). Alternatively, a reversal above the 14.6% Fib at 1.1263 exposes the 1.1366-1.1415 zone (August 18, June 9 highs).
A short EUR/USD position was entered at 1.1207. Roll accumulation through congestion has allowed for an adjustment of the initial profit target to 1.1123 without disturbing risk/reward parameters. The stop-loss will be triggered on a daily close above 1.1263. Half of the trade will be booked and stop moved to breakeven once the first objective is met.
What do short-term EUR/USD price patterns hint about on-coming moves? Find out here!
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