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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro struggles to sustain upward momentum after largest rally in a month vs. US Dollar
- Inconclusive chart setup, adverse risk/reward setup argue against taking a trade for now
The Euro is struggling to find upside follow-through after posting the largest one-day advance in a month against the US Dollar. The fundamental landscape is seemingly primed for continued consolidation in the near term until the calendar turns to 2018.
Near-term support comes in at 1.1732, with a break below that confirmed on a daily closing basis opening the door for a test of the 1.1662-79 area (August 17 low, 23.6% Fibonacci retracement). Alternatively, a move back above support-turned-resistance at 1.1839 exposes the November 27 high at 1.1961.
Prices are too close to immediate support to justify entering short from a risk/reward perspective. On the other hand, the absence of a clearly-defined bullish reversal signal argues against taking up the long side. That seems to call for patience on the sidelines for now until a better-defined opportunity presents itself.
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