Sunday, August 31, 2014

EUR/USD Technical Analysis: Euro Sinks to One-Year Low




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Talking Points:



  • EUR/USD Technical Strategy: Short at1.3644


  • Support: 1.3064, 1.3024, 1.2977


  • Resistance:1.3151, 1.3204, 1.3248


The Euro remains under heavy selling pressure, with prices dropping to the lowest level in a year against the US Dollar. A daily close below the 100% Fibonacci expansion at 1.3064 exposes falling channel floor support at 1.3024. Alternatively, a reversal above the 76.4% Fib at 1.3151 clears the way for a challenge of the 61.8% expansion at 1.3204.



We entered short EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest remains open to capture any further downside momentum with a stop-loss at 1.3583, our initial objective



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EUR/USD Technical Analysis: Euro Sinks to One-Year Low


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/USD Technical Analysis: Euro Sinks to One-Year Low

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