Monday, March 2, 2015

EUR/USD Candlestick Analysis: Euro Rebound Risk Remains




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Talking Points:



  • EUR/USD Strategy: Flat


  • Positive RSI Divergence Hints at Rebound


  • Recovery to be Used as Selling Opportunity


The Euro remains in consolidation mode against the US Dollar but positive RSI divergence warns of fading downside momentum and hints a rebound is ahead. Weekly resistance comes in at 1.1519, the 14.6% Fibonacci retracement, with a break above that exposing the 23.6% level at 1.1780. Initial support is at 1.1096, the January low.



An advance is likely to be corrective, both in terms of the long-term down trend dating back to April 2008 as well as our fundamental outlook. With that in mind, we will look for a bounce to run its course and monitor positioning for an on-coming selling opportunity.


EUR/USD Candlestick Analysis: Euro Rebound Risk Remains


Weekly Chart – Created Using FXCM Marketscope



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





EUR/USD Candlestick Analysis: Euro Rebound Risk Remains

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