Talking Points:
- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3104, 1.3064, 1.3001
- Resistance:1.3151, 1.3204, 1.3248
The euro may be setting up for a rebound against the US dollar as positive RSI divergence warns of ebbing bearish momentum. Near-term resistance is at 1.3151, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.3204. Alternatively, a turn below the September 2013 low at 1.3104 clears the way for a challenge of the 100% Fib at 1.3064.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The rest remains open to capture any further downside momentum with a stop-loss at 1.3583, our initial objective.