EUR/USD Technical Analysis: Euro Ends Longest Loss Streak in 2017
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- EUR/USD Technical Strategy: Flat
- Euro jumps higher vs US Dollar, breaks the longest losing streak yet in 2017
- Re-establishing exposure seems unattractive as ECB rate decision approaches
The Euro snapped its longest losing streak yet in 2017 in spectacular fashion, posting the largest one-day rally in a month against the US Dollar. The move came as part of the markets’ somewhat confounding response to a seemingly hawkish FOMC policy announcement that nevertheless sank the greenback across the board.
From here, a daily close above the 38.2% Fibonacci expansion at 1.1872 opens the door for a test of the 50% level at 1.1920. Alternatively, a move back below the 23.6% Fib at 1.1812 – now recast as support – paves the way for another challenge of the December 12 low at 1.1716.
The second half of the EUR/USD trade activated at 1.1824 has stopped out at breakeven after partial profit was booked on hitting the trade’s first objective. Re-establishing exposure seems ill-advised here as the ECB rate decision looms ahead and markets digest the FOMC outcome. Standing aside is probably prudent.
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