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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro jumps to two-month high only to plunge back below 1.09 figure
- Looking for improved risk/reward parameters to initiate a position
The Euro spiked to the highest level in two months against the US Dollar only to promptly plunge back to challenge October lows below the 1.09 figure. Seesaw volatility reflected the gyrations across financial markets following the outcome of the US presidential election.
Near-term support is in the 1.0826-51 area (October 25 low, 61.8% Fibonacci expansion), with a break below that on a daily closing basis opening the door for a challenge of the 76.4% level at 1.0715. Alternatively, a turn back above the 50% Fib at 1.0917 targets the 38.2% retracement at 1.1007.
Prices are stalling within a hair of support and the available is trading range is too narrow relative to recent volatility (as measured by ATR) to justify taking a trade now from a risk/reward perspective. Opting for the sidelines until a more attractive opportunity presents itself seems most prudent.
What are the fundamental trends driving the Euro in the fourth quarter? Find out here!
