EUR/USD Technical Analysis: Short Held on Channel Floor Test

By DailyFx | Updated August 24, 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: 1.3248, 1.3190-204, 1.3151
  • Resistance:1.3291, 1.3345, 1.3432

The Euro declined to hit an 11-month low against the US Dollar after carving out a Triangle chart formation. A daily close below the 1.3182-1.3204 area marked by the 61.8% Fibonacci expansion and a falling channel floor exposes the 76.4% level at 1.3151. Alternatively, a reversal above the 50% Fib at 1.3248 opens the door for a test of the 38.2% expansion 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. The rest remains open to capture continued downside momentum. The stop-loss is now at breakeven level.

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

EUR/USD Technical Analysis: Short Held on Channel Floor Test

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. USD to gain further support, ECB in focus - Commerzbank
    Forex News

    USD to gain further support, ECB in focus - Commerzbank

  2. EUR/USD downtrend set to continue in the coming weeks - UBS
    Forex News

    EUR/USD downtrend set to continue in the coming weeks - UBS

  3. EUR/USD refuses to stay below 1.2500
    Forex News

    EUR/USD refuses to stay below 1.2500

  4. EUR/USD drops below 1.2500 for first time in 2 years
    Forex News

    EUR/USD drops below 1.2500 for first time in 2 years

  5. EUR/USD breaks down to fresh lows
    Forex News

    EUR/USD breaks down to fresh lows

Trading Center