Chart Of The Day For December 16th,2014 – EUR/USD
- EUR/USD Technical Strategy: Flat
- Support: 1.2362, 1.2246, 1.2147
- Resistance:1.2501, 1.2658, 1.2913
The Euro paused to consolidate gains having reversed higher as expected after putting in a bullish Morning Star candlestick pattern. A daily close above the 14.6% Fibonacci retracementat 1.2501 exposes the 23.6% level at 1.2658. Alternatively, a turn below wedge top resistance-turned-support at 1.2362 opens the door for a challenge of the December 8 low at 1.2246.
Our long-term fundamental outlook calls for EURUSD weakness. With that in mind, we will treat any oncoming gains as corrective and use the move to look for selling opportunities rather than a long trade setup in its own right.