EURUSD Daily Fibo Channel with its Extensions and why 1.08 now
Drawing a fibonacci channel with the help of the two bottoms from Srping 2015 and the top of May gives us surprisingly nice levels to watch (tried to mark with ellipses) at bigger witch trends reversed, together with its extensions after the channel broke, finding nice support on 1st of December at 1.618 channel extension, finding later support on next extension level of 1.5 after 0.618 retrace. Now the the rate is sitting on 1.382 channel level and 0.5 retrace of previous leg.
For over a month, after the EURUSD surge on 3rd of December, seems like the pair found strong support at 1.08, being broken only once but previous support could not hold as new resistance, being violently broken back. Now, to break again 1.08 support means breaking 0.5 retrace of the 3rd to 8th of December rally, 0.618 retrace of previous leg up and above all, means breaking the 50 MA and a huge strucure level formed for almost a year!
The range we are trading at the moment is situated between this important support level of 1.08 and December's rally 1.105 top which are also the the 50 and 100 MAs now and have served as important SR dring 2015.
Thank you for wathcing the chart and happy trading everyone!
For over a month, after the EURUSD surge on 3rd of December, seems like the pair found strong support at 1.08, being broken only once but previous support could not hold as new resistance, being violently broken back. Now, to break again 1.08 support means breaking 0.5 retrace of the 3rd to 8th of December rally, 0.618 retrace of previous leg up and above all, means breaking the 50 MA and a huge strucure level formed for almost a year!
The range we are trading at the moment is situated between this important support level of 1.08 and December's rally 1.105 top which are also the the 50 and 100 MAs now and have served as important SR dring 2015.
Thank you for wathcing the chart and happy trading everyone!
