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Talking Points:
- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2471, 1.2397, 1.2334
- Resistance:1.2582, 1.2621, 1.2684
The Euro moved higher against the US Dollar as expected after producing a bullish Piercing Line candlestick pattern. Near-term resistance is in the 1.2559-82, marked by a falling trend line and the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 1.2621. Alternatively, a turn below rising trend line support at 1.2471clears the way for a challenge of the 38.2% Fib expansion at 1.2397.
We entered short EURUSD at 1.2710 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest of the trade remains open to capture any further downside momentum with a stop-loss at breakeven (1.2710).
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com