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We continue to hold short Euro against the US Dollar at 1.3757 in line with our long-term fundamental outlook. Prices have mounted a sharp recovery, with EUR/USD testing above resistance at 1.3698 marked by the January 14 high. Breaking above this boundary on a daily closing basis initially exposes the January 24 top at 1.3738. A subsequent close above the latter level will activate our stop-loss and we will exit the trade to wait for new selling opportunities. Alternatively, a reversal below falling channel resistance-turned support at 1.3639 targets a falling trend line established from late December, now at 1.3549.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com