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Talking Points:

• EUR/USD Technical Strategy: Flat

• Support: 1.1000, 1.0818, 1.0679

• Resistance:1.1202, 1.1320, 1.1439

The Euro slipped back below the 1.12 figure against the US Dollar after moving higher as expected having put in a bullish Morning Star candlestick pattern. A daily close below the 1.1000-55 area (23.6% Fibonacci expansion, horizontal pivot) exposes the May 27 low at 1.0818. Alternatively, a turn above the 38.2% level at 1.1202 opens the door for a challenge of the 50% Fib at 1.1320.

Prices are too close to support to justify entering short in line with our long-term Euro outlookfrom a risk/reward perspective. With that in mind, we will remain on the sidelines for now and wait for a better-defined setup to present itself.

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Daily Chart - Created Using FXCM Marketscope

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

original source

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