EUR/USD: pure price action. Channel, Fibonacci levels, key areas
The price of EURUSD has been declining for a while now. The massive downtrending channel illustrated on the graph is still in play and the price is trading within the borders of it.
At the moment, the price is sitting on the lower barrier of the channel. Although our general bias remains bearish both from technical and fundamental perspectives, we believe that a correctional move should follow from here and drive the price to the upper boundary of the channel that lines up with both the previous level of support now turned into resistance and the 61.8% Fibonacci retracement level.
Looking at the historical behaviour of the price, we can observe how many times the above-mentioned scenario has played out successfully.
Now, it's time to monitor the price development on lower timeframes and look for entry confirmations.
At the moment, the price is sitting on the lower barrier of the channel. Although our general bias remains bearish both from technical and fundamental perspectives, we believe that a correctional move should follow from here and drive the price to the upper boundary of the channel that lines up with both the previous level of support now turned into resistance and the 61.8% Fibonacci retracement level.
Looking at the historical behaviour of the price, we can observe how many times the above-mentioned scenario has played out successfully.
Now, it's time to monitor the price development on lower timeframes and look for entry confirmations.