Talking Points:
- EUR/USD Technical Strategy: Short at 1.3644
- Support: 1.3415, 1.3366, 1.3294
- Resistance:1.3445, 1.3493, 1.3533
The euro declined against the US dollar as expected after prices put in a bearish Evening Star candlestick pattern. A shallow rebound sees prices testing resistance at 1.3445, the 23.6% Fibonacci retracement. A daily close above that exposes 1.3493, the intersection of the 38.2% level and a falling channel top. Alternatively, turn below the 14.6% Fib at 1.3415 opens the door for another challenge of the November 8 2013 close at 1.3366.
We entered short the EUR/USD at 1.3644 in line with our long-term fundamental outlook. We have since booked profit on half of the position. The remainder of the trade remains active with a stop-loss at the breakeven level.