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EUR/USD Fibonacci Price Action

Published 03/16/2012, 01:40 AM
Updated 07/09/2023, 06:32 AM
EUR/USD
0.37%

The currency pair EUR/USD is in the channel between 16.2.2012 and 29.2.2012 where the uptrend ended at 1.34840.  During that period, the pair earned 510 pips before it started to fall from there. 

Yesterdays price action started to convey the message that the downtrend is put to a temporary halt and presently, the price is in the 23.6 of Fibonacci levels.  The next move could possibly be today to reach the 38.2 levels at 1.31665 which is the last trading day of the week.  Today, being Friday, the price action and the upward momentum suggests that it is approaching the 38.2 levels to close above 1.31665.  Today's closing at 1.31665 can confirm the beginning of upward move for another 500 pips in the coming two to three weeks.  Having said that, if the price action fails to close above the 38.2 levels can bring the price back to January levels at 1.26231.  Interestingly, the pair saw a double top on 24.20.2012 and 29.2.2012 to send the price action to these levels.  Now EUR/USD is in the process of making another attempt to reach 1.34840 and this time around, whether it is able to pierce this zone convincingly or give up is to be seen in the next couple of weeks.  

For today, the dollar index is marginally in the negative zone and if it remains in the "red" zone during the European session, then  some momentum can pickup and the price can gallop upside.  Already, the EUR/USD price action is in the pivot point area at 1.30659 and the daily resistance R1 is midway between 23.6 and 38.2 levels of the Fibonacci retracement.  This can suggest higher side momentum in another 5-6 hours and can bring in interesting trade setup for the day traders.fibonacci study

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