EUR/USD Technical Analysis: Euro Rallies Most In 3 Weeks
Dailyfx | Sep 18, 2015 05:21AM ET
Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro Resumes Two-Month Upswing, Rises to Highest Level in 3 Weeks
- Waiting for an Actionable Bearish Signal to Establish Short Position
The Euro pushed aggressively higher against the US Dollar , rising to the strongest level in three weeks. An attempt to rebuild the longer-term down trend was thwarted below the 1.11 figure, suggesting the upswing initiated in late July may be back in play.
From here, a daily close above the 38.2% Fibonacci expansion at 1.1432 clears the way for a test of the 50% level at 1.1539. Alternatively, a move below the resistance-turned-support at 1.1331, the September 1 swing high, opens the door for a challenge of the September 16 low at 1.1213.
An actionable trading setup is absent at this point. Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, an actionable sell signal that could trigger entering short in line with the long-term down trend is conspicuously absent for now. As such, we will remain on the sidelines for the time being and wait for a more attractive opportunity to emerge.
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