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Talking Points:
- EUR/USD Technical Strategy: Flat
- Support: 1.1202, 1.1005, 1.0818
- Resistance:1.1320, 1.1439, 1.1585
The Euro rebounded against the US Dollar as expected having produced a bullish Morning Star candlestick pattern. A daily close above the 50% Fibonacci expansion at 1.1320 exposes the 61.8% level at 1.1439. Alternatively, a turn below the 38.2% Fib at 1.1202 opens the door for a challenge of the 1.1000-55 area (23.6% expansion, horizontal pivot).
Our long-term outlook calls for broad-based Euro weakness. With that in mind, we will treat any on-coming gains as corrective and wait for the move higher to offer a selling opportunity. In the meantime, we will remain on the sidelines.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com