Markets

EUR/USD Technical Analysis: Aiming to Test Below 1.06 Figure

DailyFX.com -

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

Talking Points:

  • EUR/USD Technical Strategy: Short at 1.0623
  • Euro down trend resumption vs. US Dollar may be gaining momentum
  • Break of chart support suggests prices aiming to test below 1.06 figure

The Euro looks vulnerable to deeper losses after dropping to the lowest level in a month against the US Dollar, with prices seemingly poised to test below the 1.06 figure. The single currency reversed downward as expected after a test above the 1.08 threshold, completing a bearish Rising Wedge chart pattern.

A daily close below the 14.6% Fibonacci expansion at 1.0643 has exposed the 23.6% level at 1.0528 as the next downside barrier. A further push below that targets the 38.2% Fib at 1.0341. Alternatively, a reversal back above 1.0643 sees the next major upside threshold at 1.0828, the 38.2% Fib retracement.

Euro down trend resumption seems to be finding follow-through and a short position has been activated at 1.0623. The trade initially targets 1.0528. A stop-loss will be activated on a daily close above 1.0682. Profit will be taken on half of open exposure and the stop-loss moved to breakeven when the first objective is met.

Are other traders buying or selling the Euro, and what does that hint about the trend ? Find out here !

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Learn forex trading with a free practice account and trading charts from IG .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos