Sunday, February 1, 2015

EUR/USD Technical Analysis: Corrective Bounce Seen Ahead




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Talking Points:



  • EUR/USD Technical Strategy: Flat


  • Support: 1.1206, 1.1074, 1.0859


  • Resistance:1.1339, 1.1444, 1.1659


The Euro may be preparing correct upward against the US Dollar after putting in a bullish Morning Star candlestick pattern. A daily close above falling trend line resistance at 1.1339 exposes the 23.6% Fibonacci retracement at 1.1444. Alternatively, a reversal below the 14.6% Fib expansion at 1.1206 opens the door for a challenge of the 23.6% threshold at 1.1074.



Our fundamental outlook calls for broad-based Euro weakness as the ECB introduces aggressive stimulus expansion. With that in mind, we will treat any on-coming gains as an opportunity to enter short rather than a long trade setup. In the meantime, we remain flat.



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EUR/USD Technical Analysis: Corrective Bounce Seen Ahead


Daily Chart – Created Using FXCM Marketscope



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





EUR/USD Technical Analysis: Corrective Bounce Seen Ahead

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