EUR/USD Technical Analysis: Euro Down Trend Back in Play
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- EUR/USD Technical Strategy: Pending short at 1.0767
- Euro breaks monthly support, hints long-term down trend resuming
- Near-term upswing sought to enter short position below 1.08 figure
The Euro turned lower as expected after hitting a two-month high against the US Dollar, with chart positioning hinting the longer-term down trend is resuming. Prices broke through support formed by the floor of a Rising Wedge chart pattern, suggesting the corrective upswing from January lows has ended.
From here, a daily close below the 14.6% Fibonacci expansion at 1.0643 opens the door for a test of the 23.6% level at 1.0528. Alternatively, a reversal above the 38.2% Fib retracement at 1.0828 paves the way for a challenge of the 50% threshold at 1.0978.
Prices are too close to near-term support to justify entering a short trade from a risk/reward perspective. With that in mind, an order has been set to sell the pair at 1.0767 in the event of a near-term bounce. If triggered, the position will aim for a return to 1.0643 and carry a stop-loss activated on a daily close above 1.0828.
Will the Euro continue to rise through the first quarter of 2017? See our forecast and find out!
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