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Forex: EUR/USD Technical Analysis – Euro Downtrend Resuming?

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Talking Points:

We continue to hold shortEuro against the US Dollar at 1.3757 in line with our long-term fundamental outlook. The pair is now recoiling downward after putting in a Shooting Star candle below falling channel resistance (now at 1.3652). A daily close below 1.3584, the 23.6% Fibonacci expansion, targets the 38.2% level at 1.3523.

Our first major objective remains at 1.3209 (the 23.6% Fib expansion formed by the April 2011 high, the July 2012 low, and the December 2013 top). A stop-loss will be activated on a daily close above 1.3738, the January 24 high.

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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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