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Talking Points:
- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2334, 1.2272, 1.2194
- Resistance:1.2397, 1.2494, 1.2559
The Euro looks to have resumed its decline against the US Dollar after prices recoiled from trend line resistance set from mid-October. Near-term support is at 1.2334, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 1.2271. Alternatively, a turn above the 38.2% Fib at 1.2397clears the way for a challenge of trend line support support-turned-resistance at 1.2494.
We entered short EURUSD at 1.2710 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest of the trade remains open to capture any further downside momentum with a stop-loss at breakeven (1.2710).
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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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