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Talking Points:
- EUR/USD Technical Strategy: Pending Short
- Support: 1.3674 (23.6% Fib exp.), 1.3613 (38.2% Fib exp.)
- Resistance: 1.3770-1.38 (trend line, double top), 1.3892 (Dec 27 high)
The Euro is recoiling downward from resistance in the 1.3770-1.38 area, marked by a falling trend line set from the October 2013 swing high and double top. Initial support is at 1.3674, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 1.3613. Alternatively, a move above 1.38 broadly aims for the December 27 high at 1.3892. We will continue to wait on the sidelines for now until a new short trade opportunity in line with our fundamental outlook presents itself after our previous attempt to sell the pair stopped out at breakeven.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com