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Talking Points:

• EUR/USD Technical Strategy: Flat

• Support: 1.1040, 1.0712, 1.0461

• Resistance:1.1266, 1.1515, 1.1764

The Euro pushed higher against the US Dollar as expected following the appearance of a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fibonacci retracementat 1.1266 exposes the 50% level at 1.1515. Alternatively, a reversal below the 1.0959-1.1040 area (23.6% Fib, March 18 high) opens the door for a challenge of the March 31 low at 1.0712.

Our long-term outlook calls for broad-based Euro weakness. With that in mind, we will treat any on-coming gains as corrective in the context of a larger structural decline and look for opportunities to enter short after upward momentum has been exhausted.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

original source

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