EUR/USD Technical Analysis – Channel Resistance at Risk

By DailyFx | Updated July 30, 2014 AAA

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Talking Points:

  • EUR/USD Technical Strategy: Pending Short
  • Support: 1.3476-1.3502 (Feb 3 low, Jun 5 low)
  • Resistance:1.3600 (channel top), 1.3676-89 (38.2% Fib ret., Jun 6 high)

The Euro edged cautiously higher against the US Dollar, issuing the strongest daily close in over a week. A close above 1.3585, the May 29 low, has exposing a falling channel top at 1.3600. A break above that exposes the 1.3676-89 marked by the 38.2% Fibonacci retracement and the June 6 high. Alternatively, a reversal back below 1.3585 clears the way for another challenge of the 1.3476-1.3502 zone, a region bracketed by swing lows set on February 3 and June 5.

Our long-term fundamental outlook calls Euro weakness against the greenback and we continue to look for selling opportunities. An actionable trade setup is absent however and we will continue to stand asidefor the time being.

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EUR/USD Technical Analysis – Channel Resistance at Risk

Daily Chart - Created Using FXCM Marketscope 2.0

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