EUR/USD Technical Strategy: Pending Long

Prices turned lower as expected after putting in a Bearish Engulfing candlestick pattern. Sellers are now testing below support at 1.3353, the 50% Fibonacci retracement. A break lower on a daily closing basis targets the 61.8% level at 1.3269. Initial resistance is at 1.3520, the 23.6% Fib expansion, with a reversal above that aiming for the 38.2% level at 1.3624. We look at this pullback as an opportunity to establish a long position in line with our 2013 outlook.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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