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EUR/USD Technical Analysis: Euro Soars to Six-Month High

EUR/USD Technical Analysis: Euro Soars to Six-Month High

Ilya Spivak,

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Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro soars to 6-month high vs US Dollar, hits long-term resistance
  • Dominant trend still points down but actionable short signal absent

The Euro soared to the highest level in over six months against the US Dollar as troubling news-flow out of Washington DC sent the greenback scrambling. Prices are in digesting after four days of gains and a clear-cut trading opportunity does not seem readily apparent.

Resistance is now at 1.1181, the 50% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 61.8% level at 1.1261. Alternatively, a reversal back below the 38.2% Fib at 1.1100 – now recast as support – exposes the 23.6% expansion at 1.1000.

An entry order to sell EUR/USD at 1.0955 was triggered and the trade was subsequently stopped out. The dominant long-term trend continues to favor the downside but an actionable short trade setup is decidedly absent. With that in mind, opting for the sidelines seems prudent for now.

Retail traders are betting on a weaker Euro. Find out here what that hints about coming price action!

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

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