Wednesday, April 2, 2014

Forex: EUR/USD Technical Analysis ? Short Trade Setup Sought




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Talking Points:



  • EUR/USD Technical Strategy: Pending Short


  • Support: 1.3779 (38.2% Fib ret.), 1.3721 (50% Fib ret.)


  • Resistance: 1.3842-50 (23.6% Fib ret., channel floor)


The Euro fell against the US Dollar as expected but we opted not to enter shortin line with our long-term fundamental outlook amid conflicted technical positioning.This proved prudent: prices edged above the 38.2% Fibonacci retracement at 1.3779, exposing the 1.3842-50 region marked by a recently broken falling channel bottom and the 23.6% level. A daily close above this boundary threatens to open the door for a move above the 1.39 figure. Alternatively, a move back below 1.3779 targets the 50% Fib at 1.3721. We will continue to stand aside for now, looking for a retest of the channel bottom to produce a short trade opportunity.



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dailyclassics_eur-usd_body_Picture_12.png, Forex: EUR/USD Technical Analysis – Short Trade Setup Sought


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





Forex: EUR/USD Technical Analysis ? Short Trade Setup Sought

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