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Talking Points:
- EUR/USD Technical Strategy: Short at 1.2710
- Support: 1.2213, 1.1974, 1.1781
- Resistance:1.2386, 1.2420, 1.2501
The Euro may be readying to turn higher against the US Dollar after showing a bullish Morning Star candlestick pattern within a Falling Wedge chart formation. A daily close above support-turned-resistance at 1.2386 exposes the wedge top at 1.2420. Alternatively, a turn below the 1.2213-30 zone (wedge floor, 23.6% level) opens the door for a challenge of the 38.2% Fib at 1.1974.
We sold EURUSD at 1.2710 in line with our long-term fundamental outlook subsequently booked profit on half of the position. The remainder of the trade is open to capture any further downside momentum with a stop-loss trailed to breakeven (1.2710).
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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