Skip to Content
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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View More
EUR/USD Technical Analysis: Euro Top May Be in Place vs US Dollar

EUR/USD Technical Analysis: Euro Top May Be in Place vs US Dollar

Ilya Spivak,

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

Talking Points:

  • EUR/USD Technical Strategy: Pending short at 1.2308
  • Euro breaks near term uptrend, hints at further weakness ahead vs US Dollar
  • Entry order established to trigger short trade with improved risk/reward setup

The Euro looks to have established a top below the 1.26 figure against the US Dollar, with prices now seemingly poised to probe below 1.22 mark. The near-term series of higher highs and lows started from the January 9 bottom has been broken, implying the immediate path of least resistance favors the downside.

Support now lines up at 1.2162, the 38.2% Fibonacci retracement, with a daily close below that opening the door for a challenge of the 1.2046-70 area (50% level, August 29 high). Alternatively, a move back above support-turned-resistance at 1.2323 exposes the January 25 high at 1.2538 anew.

Prices are a bit too close to support to justify entering short from a risk/reward perspective. With that in mind, an entry order will be set sell EUR/USD at 1.2308. If activated, the trade will initially target 1.2162 and carry a stop-loss triggered on a daily close above 1.2383.

Find out here what the #1 mistake that traders make is and how you can fix it!

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

DISCLOSURES