In forex, the markets are watching a fixed game with the USD/Chines yuan (USD/CNY), leaving plenty o...
EUR/USD Technical Analysis: Euro Drops Most in 2 Months
05/19/2015 9:00 am EST
Ilya Spivak, of DailyFX.com, takes a technical look at how the euro declined against the dollar and explains that prices are now wedged too closely between near-term support and resistance levels to justify taking a trade in line with his long-term outlook from a risk/reward perspective.
- EUR/USD Technical Strategy: Flat
- Support: 1.1242, 1.1104, 1.0992
- Resistance:1.1327, 1.1463, 1.1565
The euro declined against the US dollar as expected after negative RSI divergence hinted at ebbing upside momentum. A daily close below the 23.6% Fibonacci retracement at 1.1242 exposes the 38.2% level at 1.1104. Alternatively, a turn above the 14.6% retracement at 1.1327 opens the door for a challenge of the 38.2% Fib expansion at 1.1463.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade in line with our long-term outlook from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
By Ilya Spivak, Currency Strategist, DailyFX.com
Related Articles on CURRENCIES
The barometer of risk-on and off has usually been the Japanese yen (JPY) but today, the break of 1.1...
The euro (EUR) and USD may be the headlines but the breakout for diving in risk naked is probably eu...
As FOMC Jerome Powell and U.S. industrial production (up 0.6% in June after declining 0.5% in May) a...