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Talking Points:
- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2500, 1.2377, 1.2278
- Resistance:1.2575, 1.2698, 1.2754
The Euro sank to the weakest level in over 2 years to test the 1.25 figure against the US Dollar. Near-term support is at 1.2500, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 1.2377. Alternatively, a turn above the 14.6% Fib at 1.2575 opens the door for a test of the 1.2659-98 area marked by the November 2012 low and the October 2 swing high.
We entered short 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