EUR/USD Trying To Relaunch Recovery

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro Finds Support Below 1.12 Figure, Attempts to Resume Recovery
  • Waiting for Signs of Long-Term Down Trend Resumption to Get Short

The euro is attempting to resume the upside correction launched a month ago against the US dollar having found support above the 1.11 figure. Prices hit seven-month highs last week but failed to maintain momentum above the 1.17 mark. Still, the series of higher highs and lows carved out from the August 5 low remains intact.

Near-term resistance is now at 1.1368, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 1.1501. Alternatively, a reversal back below the 14.6% Fib at 1.1287 initially clears the way for a test of the August 28th low at 1.1155.

The long-term EUR/USD trend remains bearish. That paints the current upswing as well as the larger advance from lows in mid-March as ultimately corrective. With that in mind, we will remain on the sidelines until positioning produces actionable confirmation of down trend resumption.

EUR/USD Daily Chart

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