EUR/USD Technical Analysis: Short Trade Setup Sought

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Talking Points:

  • EUR/USD Technical Strategy: Flat

  • Support: 1.2173, 1.2080, 1.1929

  • Resistance:1.2246, 1.2324, 1.2418

The Euro has stalled after sinking to a 28-month low against the US Dollar, with prices waiting for a new directional catalyst. Near-term support is at 1.2173, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 1.2080. Alternatively, a reversal above the 50% Fib at 1.2249 clears the way for a test of the 38.2% expansion at 1.2324.

Prices are wedged too closely between near-term support and resistance levels to justify entering a long or short trade from a risk/reward perspective. With that in mind, we will remain on the sidelines for now an attractive selling opportunity in line with our long-term outlook presents itself.

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EUR/USD Technical Analysis: Short Trade Setup Sought
EUR/USD Technical Analysis: Short Trade Setup Sought

Daily Chart - Created Using FXCM Marketscope

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


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