EUR/USD Technical Analysis: Short Position Now in Play
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Talking Points:
EUR/USD Technical Strategy: Short at 1.2710
Support: 1.2500, 1.2316, 1.2140
Resistance:1.2787, 1.2852, 1.3070
The Euro corrected higher after seemingly resuming its down trend against the US Dollar last week. Near-term support is in the 1.2500-34 area, marked by the October 3 low and the 23.6% Fibonacci expansion, with a daily close below that exposing the 38.2% level at 1.2316. Alternatively, a reversal above channel support-turned-resistance at 1.2787 opens the door for a test of the 23.6% Fib retracement at 1.2852.
Our entry order to short EURUSD at 1.2710 in line with our long-term fundamental outlook was triggered. We are initially targeting 1.2534, with a stop-loss to be activated on a daily close above 1.2886. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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