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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro struggles to sustain upward momentum after largest rally in a month vs. US Dollar
- Inconclusive chart setup, adverse risk/reward setup argue against taking a trade for now
The Euro is struggling to find upside follow-through after posting the largest one-day advance in a month against the US Dollar. The fundamental landscape is seemingly primed for continued consolidation in the near term until the calendar turns to 2018.
Near-term support comes in at 1.1732, with a break below that confirmed on a daily closing basis opening the door for a test of the 1.1662-79 area (August 17 low, 23.6% Fibonacci retracement). Alternatively, a move back above support-turned-resistance at 1.1839 exposes the November 27 high at 1.1961.
Prices are too close to immediate support to justify entering short from a risk/reward perspective. On the other hand, the absence of a clearly-defined bullish reversal signal argues against taking up the long side. That seems to call for patience on the sidelines for now until a better-defined opportunity presents itself.
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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.
