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Talking Points:
- EUR/USD Technical Strategy: Short at1.3644
- Support: 1.2602, 1.2532, 1.2445
- Resistance:1.2673, 1.2760, 1.2858
The Euro put in a Hammer candlestick, hinting a bounce against the US Dollar may be around the corner. Near-term resistance is in the 1.2659-73 area marked by the November 2012 low and the 38.2% Fibonacci expansion, with a break above that exposing the 1.2754-60 zone bracketed by the July 2013 bottom and the 23.6% level. Alternatively, a drop below the 50% Fib at 1.2602 opens the door for a test of the 61.8% expansion at 1.2532.
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
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