EUR/USD is currently trading within a range. After retesting the 38.2 fib level and continuing though a 50% retracement. Price action is showing bearish momentum towards the 61.8 fib level on the short term trend and more significantly the 61.8 fib level on the monthly time-frame indicated by the blue support level.
Price has is currently at 1.13152 and has broken a key support area that was suggested by the 50 day moving average.
Looking towards a potential reversal at the support of a 61.8 fib level that is also supported by the 300 day moving average. There is potential that price action may develop new structure lows around the 61.8 fib level with buyers placing orders and anticipating the potential of a reversal.
In the case of a close below the 61.8 fib level I will be looking for a retest of the support as resistance and indications of an increase in volatility heading to the next area of support.
1) Trading in a pennant
2) moving averages
3) Fibonacci retracement
Price has is currently at 1.13152 and has broken a key support area that was suggested by the 50 day moving average.
Looking towards a potential reversal at the support of a 61.8 fib level that is also supported by the 300 day moving average. There is potential that price action may develop new structure lows around the 61.8 fib level with buyers placing orders and anticipating the potential of a reversal.
In the case of a close below the 61.8 fib level I will be looking for a retest of the support as resistance and indications of an increase in volatility heading to the next area of support.
1) Trading in a pennant
2) moving averages
3) Fibonacci retracement