The
Fibonacci retracements that have the highest probability of becoming support or
resistance are the 61.8% and the 76.4%. On the 4 hour chart of the EUR/USD we
can see how the price retraces to the 76.4% Fibo and stalls at that area, which
is just above the 1.1100 level. Today the price tried to break above that zone,
but it couldn’t stay above that zone and comes back down below it. The bullish
trend is still in place, but we could see a retracement to the 1.1000 level.
Above the 1.1100 level, the 1.1200 could act as resistance. In case the price
visits the 1.1200 level, then it would be completing a 100% parabolic
retracement. It is called a “parabolic” retracement, because the price forms
what it appears to be a “parabola”.
I fully agree with your analysis, it could have found some resistance.
ReplyDeleteAttention will focus on the Fed meeting that starts today and has its outcome tomorrow with the release of the statement of the meeting.
ReplyDeleteGood assessment!
ReplyDeleteThis analysis is very useful!
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteGood analysis.
ReplyDeleteThe pair is still slowly descending to 1.1000 but the FOMC rate decision later today might change that.
ReplyDeleteInteresting info!
ReplyDeleteWell spotted, thank you for the analysis.
ReplyDelete