The
Fibonacci retracement levels can act as very reliable support or resistance
zones on occasions and we could find good entries around these retracements.
The most reliable Fibonacci percentages are the 61.8% and the 76.4%. On the
daily chart below of the EUR/USD we can see that the pair had a good run up
from the 1.3512 to the 1.3700 level. Once it got to the 1.3700 level it bounced
to the downside and so far it has retraced 61.8% of the recent rally.
The EUR/USD
may probably try to bounce to the upside during the next week from that 61.8%
around the 1.3584 level. However, if the price continues going lower then we
should pay special attention to the 76.4% Fibo level around the 1.3556, because
this level is even more relevant than the 61.8% and we could see a good bounce
to the upside from there.
Thanks for such an informative analysis.
ReplyDeleteVery useful analysis. Thank you.
ReplyDeletegreat analysis ill be watching the price
ReplyDeleteI agree with you, Fibonacci is very reliable and important for Technical Analists.
ReplyDeleteLet's see if the 61.8% Fibo level can hold EUR/USD.
ReplyDeletedon't think will hold
ReplyDeletemight find some support at that level but I'm also bearish
ReplyDelete