News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
EUR/USD Technical Analysis: Eyeing Ten-Month Trend Resistance

EUR/USD Technical Analysis: Eyeing Ten-Month Trend Resistance

2017-03-16 10:04:00
Ilya Spivak, Head Strategist, APAC
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro rises to 5-week high vs. US Dollar after FOMC rate decision
  • Overall positioning favors bearish bias but short trade setup absent

The Euro soared against the US Dollar following the FOMC monetary policy announcement (as expected), rising to the highest level in five weeks. Overall chart positioning continues to suggest the dominant trend favors weakness however.

Near-term resistance is at 1.0828, the intersection of a falling trend line set from May 2016 and the 38.2% Fibonacci retracement. A daily close above this barrier exposes the 50% level at 1.0978. Alternatively, a move below the March 14 low at 1.0598 targets the February 22 bottom at 1.0494.

An actionable short trade setup is absent and prices are too close to near-term resistance to consider a tactical, counter-trend long position. With that in mind, opting for the sidelines seems most prudent until a more compelling opportunity presents itself.

Are other traders buying or selling the Euro, and what does that hint about the trend? Find out here!

EUR/USD Technical Analysis: Eyeing Ten-Month Trend Resistance

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

DISCLOSURES