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

By DailyFx | Updated August 24, 2014 AAA

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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.

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

Daily Chart - Created Using FXCM Marketscope 2.0

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