Wednesday, August 27, 2014

EUR/USD Technical Analysis: Recovery to Yield Short Setup




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Talking Points:



  • EUR/USD Technical Strategy: Short at 1.3644


  • Support: 1.3151, 1.3041-64, 1.2977


  • Resistance:1.3232, 1.3281, 1.3361


The Euro may be preparing to launch a corrective recovery against the US Dollar after prices put in a Bullish Engulfing candlestick pattern. Near-term resistance is at 1.3232, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.3281. Alternatively, a turn below the 76.4% Fib expansion at 1.3151 opens the door for a test of the 100% threshold at 1.3064.



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 in play with a stop-loss at breakeven. We will look to any on-coming strength as an opportunity to add to the trade.



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EUR/USD Technical Analysis: Recovery to Yield Short Setup


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/USD Technical Analysis: Recovery to Yield Short Setup

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