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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro recoils sharply higher after from monthly low vs. US Dollar
- Clear-cut signs of topping sought to re-establish short position
The Euro bounced sharply higher after falling to the weakest level in a month, posting the biggest daily gain in two weeks against the US Dollar. Still, overall chart positioning continues to suggest the path of least resistance favors continuation of the long-term down trend.
From here, a daily close above support-turned-resistance at 1.0682 opens the door for a test of the 38.2% Fibonacci retracement at 1.0828. Alternatively, reversal back below support at 1.0518 paves the way for another test of the late-2016 bottom at 1.0366.
A short position activated at 1.0623 hit is first profit target and partial profit was booked. The second half of the trade was stopped out at breakeven. From here, the absence of a clear-cut bearish reversal signal argues against fading recent gains, at least for now.
Are other traders buying or selling the Euro, and what does that hint about the trend? Find out here!
