Based on the current price at 1.0646, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the longer-term Fibonacci level at 1.0651. The current set up suggests any rallies are likely to be difficult and labored and that the way of least resistance is down.
A sustained move under 1.0651 will indicate the presence of sellers. The first target is an uptrending angle at 1.0614. If this angle fails then look for an acceleration into the next uptrending angle at 1.0569. This is the last potential support angle before the 1.0524 main bottom.
Overcoming and sustaining a move over 1.0651 will signal the presence of buyers/suport. This could lead to a quick rally into a steep downtrending angle at 1.0668.
Overtaking 1.0668 could trigger a jump into 1.0700, 1.0704 and 1.0715.
The 50% level at 1.0715 is the trigger point for an acceleration to the upside. If the buying is strong enough then we could see a rally into the next downtrending angle at 1.0788.
Watch the price action an read the order flow at 1.0651 all session. Trader reaction to this level will tell us if the buyers are stepping in to stop the price slide.
Happy forex trading
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