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Talking Points:
- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2858, 1.2796, 1.2673
- Resistance:1.2994, 1.3081, 1.3159
The Euro turned sharply lower against the US Dollar once again in the aftermath of the FOMC monetary policy announcement. Near-term support is in the 1.2858-71 area, marked by the September 9 low and the 14.6% Fibonacci expansion. A daily close below that exposes the 23.6% level at 1.2796. Alternatively, a bounce above the September 16 high at 1.2994 clears the way for a challenge of channel floor support-turned-resistance at 1.3081.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest remains open to capture any further downside momentum with a stop-loss at 1.3583, our initial objective.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com