EUR/USD Technical Analysis: Euro Down Move to Accelerate?
EUR/USD Technical Strategy: NET SHORT AT 1.2276
- Euro back at key support after upswing falters as expected
- Breakdown to signal next stage of long-term bearish move
- Looking for new opportunities to scale into short position
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The Euro is testing key chart support after an upswing faltered above the 1.18 figure as expected, with a break likely to mark the next leg in the long-term down trend. A look at the monthly chart shows the pair sitting squarely atop range resistance-turned-support that previously contained prices for over two years.
Zooming in to the daily chart for a more actionable look, a daily close below immediate support in the 1.1527-77 area opens the door for a challenge of the 1.1285-1313 zone. Near-term resistance is in the 1.1662-1.1722 region, with a reversal above that exposing recent swing highs at 1.1840 and 1.1852.
The EUR/USD short positioned initiated at 1.2407 and subsequently scaled up near 1.19 remains in play. Opportunities to add to exposure further will be evaluated on a break of support or a substantive upswing back above 1.17. The net cost basis is now 1.2276. A stop-loss will be activated on a discretionary basis.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.