EUR/USD Technical Strategy: Short at 1.3654
Support: 1.3561 (61.8% Fib ret.), 1.3459-76 (Feb 3 low, 76.4% Fib ret.)
Resistance:1.3643 (50% Fib ret.), 1.3726 (38.2% Fib ret.)
The Euro appears likely to continue lower after falling to the lowest level in almost four months against the US Dollar. Sellers are now aiming to challenge the 61.8% Fibonacci retracement at 1.3561, with daily close below that exposing the 1.3458-76 area marked by the February 3 low and the 76.4% level. Alternatively, a turn above resistance at 1.3643, the 50% Fib clears the way for a test of the 38.2% retracement at 1.3726.
We sold EURUSD at 1.3654 in line with our long-term fundamental outlook and have since booked profit on half of the position. The remainder of the trade will remain open to take advantage of any further downward momentum. The stop-loss has been revised to the break-even level.
Read more here: EUR/USD 05/06/2014