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- EUR/USD Technical Strategy: Flat
- Euro recoils sharply higher after from monthly low vs. US Dollar
- Clear-cut signs of topping sought to re-establish short position
The Euro bounced sharply higher after falling to the weakest level in a month, posting the biggest daily gain in two weeks against the US Dollar. Still, overall chart positioning continues to suggest the path of least resistance favors continuation of the long-term down trend.
From here, a daily close above support-turned-resistance at 1.0682 opens the door for a test of the 38.2% Fibonacci retracement at 1.0828. Alternatively, reversal back below support at 1.0518 paves the way for another test of the late-2016 bottom at 1.0366.
A short position activated at 1.0623 hit is first profit target and partial profit was booked . The second half of the trade was stopped out at breakeven. From here, the absence of a clear-cut bearish reversal signal argues against fading recent gains, at least for now.
Are other traders buying or selling the Euro, and what does that hint about the trend ? Find out here !
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