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Talking Points:
- EUR/USD Technical Strategy: Short at 1.1207
- Euro digesting losses after falling to lowest level in nearly 8 months
- Positive RSI divergence hints recovery vs. US Dollar may be ahead
The Euro paused to consolidate losses after breaching the 1.09 figure against the US Dollar to hit the lowest level in close to eight months. Early signs of positive RSI divergence hint a bounce may be ahead but gains may be little more than a correction within the larger down move that began near 1.14, as expected.
A daily close above the 1.0931-52 area (61.8% Fibonacci expansion, July 25 low) paves the way for a challenge of the 50% level at 1.1014. Alternatively, a push below the 76.4% Fib at 1.0828 opens the door for a test of the 100% expansion at 1.0662.
A short EUR/USD trade was established at 1.1207 and partial profit was booked after prices hit the position’s first objective. Remaining exposure continues to be in play to capture on-going downward momentum, with the stop-loss revised to the breakeven level (1.1207).
What do short-term EUR/USD price patterns hint about on-coming moves? Find out here !
