To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/USD Technical Strategy: Pending Short
- Support: 1.3835 (23.6% Fib exp.), 1.3793 (38.2% Fib exp.)
- Resistance: 1.3905 (Apr 11 high)
The Euro may be carving out a top below 1.39 to the US Dollar after prices put in bearish Evening Star candlestick pattern. A break below support at 1.3835, the 23.6% Fibonacci expansion, initially exposes the 38.2% level at 1.3793. Near-term resistance is at 1.3905, the April 11 swing high.
Our long-term fundamental outlook calls for a bearish bias on the Euro against the greenback. We will opt against entering short at present however with prices sitting too close to near-term support to justify a trade on risk/reward grounds, waiting for a more attractive setup to present itself.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com