The Euro has advanced considerably against the US Dollar since setting a swing bottom on 04/20, but technical positioning suggests a reversal may materialize in the days ahead as prices approach critical resistance. Specifically, the 1.37 level sees the intersection of a falling trend line that has capped EURUSD since mid-August and the lower boundary of a congestion region that has acted as both support and resistance on numerous occasions since September. While a clear sell signal has not materialized, we will monitor prices closely in the days ahead for an opportunity to enter short, initially targeting the previous swing bottom near 1.29 and beyond the double bottom above 1.2456.
