EUR/USD Technical Analysis: Decline Pauses Above 1.07

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Talking Points:

  • EUR/USD Technical Strategy: Flat

  • Support: 1.0640, 1.0456, 1.0386

  • Resistance:1.0797, 1.0894, 1.1051

The Euro paused to consolidate losses having declined against the US Dollar following the appearance of a Bearish Engulfing candlestick pattern. A daily close below the 38.2% Fibonacci expansionat 1.0640 exposes the 1.0456-1.0513 area (50% level, March 16 low). Alternatively, a turn above the 23.6% Fib at 1.0797 opens the door for a challenge of the 14.6% expansion at 1.0894.

The available trading range is too narrow to justify entering a tradein line with our long-term outlookfrom a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

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EUR/USD Technical Analysis: Decline Pauses Above 1.07
EUR/USD Technical Analysis: Decline Pauses Above 1.07

Daily Chart - Created Using FXCM Marketscope

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


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