Thursday, May 22, 2014

EUR/USD Technical Analysis ? Short Position Now in Play




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Talking Points:



  • EUR/USD Technical Strategy: Short at 1.3654


  • Support: 1.3598 (76.4% Fib exp.), 1.3476 (Feb 3 low)


  • Resistance:1.3673 (61.8% Fib exp.), 1.3707 (wedge floor)


The Euro continued lower after breaking through the bottom of a Rising Wedge chart formation, issuing the lowest close in nearly four months. Sellers now aim to challenge the 76.4% Fibonacci retracement at 1.3598, with a break below that targeting the February 3 low at 1.3476. Alternatively, a move above the 61.8% level at 1.3673 aims for Wedge bottom support-turned-resistance at 1.3707.



We will now attempt to enter short in line with our long-term fundamental outlook, aiming for 1.3598 as an initial objective. A stop-loss will be triggered on a daily close above 1.3710. We will book profit on half of the trade and trail the stop to breakeven once the first target is hit.



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EUR/USD Technical Analysis – Short Position Now in Play


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/USD Technical Analysis ? Short Position Now in Play

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