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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro gains for fifth straight day, aims to break down trend from mid-April
- Gains seen as corrective within the context of a long-term structural decline
The Euro is poised to break the near-term down trend established from mid-April highs as prices work to secure a fifth consecutive daily gain. The structural long-term trend remains points downward however, painting further gains from here as ultimately corrective.
A daily close above the 14.6% Fibonacci expansion at 1.1353 opens the door for a test of the 23.6% level at 1.1439. Alternatively, a move below the April 25 low at 1.1215 clears the way for a challenge of the 38.2% Fib retracement at 1.1103.
We sold EUR/USD at 1.1390 and subsequently booked profit on half of the position. The remainder of the trade has now stopped out at breakeven. We will move to the sidelines for the time being, waiting for a new selling opportunity in line with the long-term down trend to present itself.
What do FXCM traders’ bets on the Euro say about where it’s going? Find out here!
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