Sunday, March 1, 2015

EUR/USD Technical Analysis: Digesting Below 1.12 Threshold




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Talking Points:



  • EUR/USD Technical Strategy: Flat


  • Support: 1.1185, 1.0970, 1.0796


  • Resistance:1.1318, 1.1533, 1.1659


The Euro is digesting losses after moving sharply lower to threaten the January swing low against the US Dollar. Near-term support is at 1.1185, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 1.0970. Alternatively, a turn above the 1.1276-1318 area (January 30 close, 14.6% Fib expansion) opens the door for a challenge of the February 3 high at 1.1533.



Prices are too close to support to justify entering short in line with our long-term outlookfrom a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.



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EUR/USD Technical Analysis: Digesting Below 1.12 Threshold


Daily Chart – Created Using FXCM Marketscope



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





EUR/USD Technical Analysis: Digesting Below 1.12 Threshold

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