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EUR/USD Technical Analysis: Testing 14-Year Lows Anew

EUR/USD Technical Analysis: Testing 14-Year Lows Anew

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Talking Points:

  • EUR/USD Technical Strategy: Short at 1.0477
  • Euro back near 14-year low after spike above 1.06 mark
  • Partial profit taken after short positon hit initial objective

The Euro promptly retreated to familiar territory near 14-year lows against the US Dollar after sharp spike back above the 1.06 figure in thin holiday trade. Prices remain confined to a choppy consolidation range carved out after they broke support that had capped the downside since mid-March 2015.

From here, a daily close below the 23.6% Fibonacci expansion at 1.0355 opens the door for a test of the 38.2% level at 1.0171. Alternatively, a reversal above support-turned-resistance in the 1.0459-1.0520 area (March 16, April 13 2015 lows) exposes the 23.6% Fib retracement at 1.0651.

A EUR/USD short trade was activated at 1.0477. The initial profit target has been hit and profit has been taken on half of the position. Remaining exposure remains in play to capture any follow-on weakness. The stop-loss has been adjusted to the breakeven level.

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

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