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EUR/USD Technical Analysis: Down Trend May Be Resuming
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Talking Points:
EUR/USD Technical Strategy: Short at 1.1207
Euro breaks monthly uptrend, hints dominant down move is resuming
Short position triggered, targeting just below 1.11 figure vs. US Dollar
The Euro declined against the US Dollar as expected after putting in a bearish Harami candlestick pattern following a test of trend line support-turned-resistance. A break of support guiding prices higher since late July now hints the longer-term down trend is resuming.
From here, a break below the 38.2% Fibonacci expansion at 1.1097 opens the door for a test of the 50% level at 11014. Alternatively, a daily close above resistance in the 1.1200-15 area (23.6% Fib, trend line) sees the next upside barrier at 1.1263, the 14.6% expansion.
An intraday gap-filling bounce has offered acceptable risk/reward parameters and a short trade has been triggered at 1.1207, initially targeting 1.1097. A stop-loss will be activated on a daily close above 1.1263. Half of the position will be booked and the stop-loss trailed to breakeven when the first objective is met.
What do past EUR/USD price patterns hint about where prices are going? Find out here!
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