Tanalys

EUR/USD Technical Analysis: Support Now Below 1.31 Figure

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Talking Points:

The Euro continues to push downward against the US Dollar, with prices now targeting support below the 1.31 figure. Near-term support is at1.3064, 100% Fibonacci expansion, with a break below that on a daily closing basis exposinga falling channel floor at 1.3016. Alternatively, a reversal above the 76.4% Fib at 1.3151 clears the way for a challenge of the 61.8% expansion at 1.3204.

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

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