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Talking Points:
- EUR/USD Technical Strategy: Flat
- Support: 1.1777, 1.1684, 1.1609
- Resistance:1.1929, 1.2080, 1.2173
The Euro fell for a fifth consecutive day to overcome a major multi-year support against the US Dollar. A daily close below the 123.6% Fibonacci expansion at 1.1777 exposes the 138.2 level at 1.1684. Alternatively, a turn back above the 1.1875-1.1929 area, marked by the June 2010 low and the 100% Fib, opens the door for a challenge of the 76.4% expansion at 1.2080.
Entering short in line with our long-term outlook seems tempting from a technical perspective. We are leery of chasing the US Dollar higher here however, particularly with the US Employment report looming ahead. With that in mind, we will tactically opt to remain flat and wait for a bounce to yield a selling opportunity.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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