EUR/USD Technical Analysis: A Top in Place Below 1.10?
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- EUR/USD Technical Strategy: Short at 1.0889
- Euro forms bearish candlestick pattern at major trend resistance
- Short trade looks for first leg of reversal to test below 1.08 figure
The Euro may be readying to turn lower against the US Dollar having tested the bounds of the dominant down trend in play for nearly a year. Prices spiked following the first round of the French presidential election but a bearish Evening Star candlestick pattern hints a top may be in place.
Near-term support is at 1.0765, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 1.0650-82 area (23.6% level, horizontal pivot). Alternatively, push above the April 26 high at 1.0951 exposes the outer layer of down trend resistance at 1.1018.
Technical positioning and risk/reward parameters appear attractive and a short EUR/USD position has been triggered at 1.0889. The trade initially targets 1.0765 and a stop-loss will be activated on a daily close above 1.0951. Half of profit will be booked and the stop moved to breakeven when the first objective is met.
What will shape Euro trends through mid-year? See our forecast to find out!
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