EUR/USD Technical Analysis: Corrective Recovery Expected

By DailyFx | August 14, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Short at 1.3644
  • Support: 1.3345, 1.3291, 1.3248
  • Resistance:1.3419, 1.3472, 1.3516

The Euro may be readying to correct higher against the US Dollar after an Evening Star candlestick pattern marked a reversal downward, as expected. The case for an upside scenario hinges on the appearance of a Hammer candle coupled with positive RSI divergence. A daily close above the 23.6% Fibonacci retracement at 1.3419 exposes 1.3472, the intersection of the 38.2% level and a falling channel top. Alternatively, a turn below the 23.6% Fib expansion at 1.3345 opens the door for a test of the 38.2% threshold at 1.3291.

We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. Any on-coming upswing will be treated as an opportunity to add to the position.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/USD Technical Analysis: Corrective Recovery Expected

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD trading slightly up today close to 1.2660 - FXStreet
    Forex News

    EUR/USD trading slightly up today close to 1.2660 - FXStreet

  2. EUR/USD sticks to the range
    Forex News

    EUR/USD sticks to the range

  3. EUR/USD holds initial test of 1.2605 support - Commerzbank
    Forex News

    EUR/USD holds initial test of 1.2605 support - Commerzbank

  4. EUR/USD Doji Signals Bears Lacking Conviction At A Technical Barrier
    Forex News

    EUR/USD Doji Signals Bears Lacking Conviction At A Technical Barrier

  5. EUR/USD lies in wait at 1.2650
    Forex News

    EUR/USD lies in wait at 1.2650

Trading Center