EUR/USD—Buyers Test 3 Month Resistance Line

EUR/USD (1.0694)

• Resistance Levels: 1.0955, 1.1262, 1.1512
• Support Levels: 1.0764, 1.0455, 1.0315
• Trade Strategy: Stand Aside

The euro rallied in the EUR/USD Forex market. Look at the below daily MT 4 chart and note the Piercing Line candlestick.

At this point we need a break above the falling trend line resistance level, 3 month line, at 1.0955. This happens, with a daily close, then we would see a challenge of the technical resistance at 1.1262. A fall below the technical support at 1.0764 will challenge the next technical support at 1.0455.

My long to medium term euro outlook remains bearish. Keeping this in mind, I will look to enter a short euro, as any recovery is corrective. For now, I am standing aside and waiting for a more attractive opportunity to pull the short sale trigger.