EUR/USD—The Euro Digests Gains Below the Pivot at 1.10

EUR/USD (1.0819)

• Resistance Levels: 1.1050, 1.1262, 1.1512
• Support Levels: 1.0805, 1.0455, 1.0243
• Trade Strategy: Stand Aside

The euro is trading sideways below the key 1.10 pivot after seeing a brief rally against its US Dollar counterpart. Note the below daily MT 4 chart and the piercing line candlestick. This is a bullish reversal sign and accounts for the brief bounce higher.

There is resistance at 1.1050. A daily close above this level, which is the March 26 high, will challenge the next technical resistance level at 1.1262. Should the EUR/USD move lower we see a former resistance now technical support level at 1.0805. A break below this level will challenge the support level at 1.0455.

My long-term euro outlook remains very bearish. Any gains are probably corrective and I will treat them as such. With that in mind I am still waiting patiently for a stronger short euro setup to materialize.