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EUR/USD Technical Analysis: Pivotal Resistance Pressured
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Talking Points:
EUR/USD Technical Strategy: Flat
Euro rises to challenge trend-defining former support set from mid-March
Waiting for reversal confirmation to enter short in line with long-term bias
The Euro finds itself at trend-definingtechnical resistance after rising to the highest level in four months against the US Dollar. Prices are testing rising trend line support-turned-resistance set from mid-March, with behavior at this juncture potentially defining for trend development in the weeks and months ahead.
A daily close above the intersection of the trend line and the 50% Fibonacci expansion at 1.1354 opens the door for a test of the 61.8% level at 1.1417. Alternatively, a reversal below the 38.2% Fib at 1.1291 paves the way for a challenge of the 23.6% expansion at 1.1213.
We are keen to enter short EUR/USD in line with our 2016 fundamental outlook. An actionable bearish reversal signal is absent for now however, warning that pulling the trigger on a trade is premature. With that in mind, we will remain on the sidelines for now and wait for further confirmation.
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