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The Euro is struggling to rise against the US Dollar, with multiple attempts to build upside momentum cut short at channel top resistance. The recent standstill has materialized against a backdrop of risk aversion that might have been expected to drive the pair higher amid liquidation of EUR-funded carry trades.
A reversal below the horizontal pivot at 1.0819 initially exposes the 1.0686-1.0711 area (January 5 low, 38.2% Fibonacci expansion). Alternatively, a daily close above channel top resistance – now at 1.0913 – paves the way for a challenge of the December 15 high at 1.1060.
The single currency’s inability to find support in risk-off trade seems telling and we will now attempt to enter short EUR/USD, initially targeting 1.0819. A stop-loss will be activated on a daily close above 1.0940. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is met.
- By Ilya Spivak, DailyFx.com
A reversal below the horizontal pivot at 1.0819 initially exposes the 1.0686-1.0711 area (January 5 low, 38.2% Fibonacci expansion). Alternatively, a daily close above channel top resistance – now at 1.0913 – paves the way for a challenge of the December 15 high at 1.1060.
The single currency’s inability to find support in risk-off trade seems telling and we will now attempt to enter short EUR/USD, initially targeting 1.0819. A stop-loss will be activated on a daily close above 1.0940. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is met.
- By Ilya Spivak, DailyFx.com
