Technical Analysis for EURO

Technical Analysis for EURO

The pair dropped sharply yesterday after failing to stabilize above the first target of the AB=CD technical harmonic pattern at 1.3440, followed by a breakout below 1.3355 levels which extended the move toward the second target at 1.3270 levels. The pair is trading now below the second target represented in 61.8% correction, of which stability below might extended targets of the pattern starting at 1.3150 levels at 78.6% correction toward the key support level of the ascending channel at 1.3205 levels. We hold on to our negative expectations as far as 1.3355 levels remain intact.

The trading range for today is among the key support at 1.3080 and key resistance at 1.3355.

The general trend over short term basis is to the upside targeting 1.4375 as far as areas of 1.2990 remains intact.

Support: 1.3235, 1.3205, 1.3170, 1.3150, 1.3100
Resistance: 1.3270, 1.3310, 1.3355, 1.3385, 1.3440

Recommendation Based on the charts and explanations above, our opinion is selling the below 1.3270 targeting 1.3205, 1.3150 then 1.3080 and stop-loss with four-hour closing above 1.3355 might be appropriate