I tried to fit each partial spike of upward rally into Fibonacci retracement scale. It is clear that the trend is still very strong, mostly taking reaction from Fib 38.2 level.
Also, we can note that the region between EMA10 and EMA25 is pretty well working as the "buy the dips" level.
I believe that the we are very near to the point of taking short position on EURUSD, but not now yet. I will wait for two confirmations:
- A clear break of Fibo 78.6 retracement level of the latest upward leg, confirmed with at least one daily close
- Price level falls well below EMA25, confirmed with three daily closes
The closest resistance level is Fibo 50.0 retracement level of 2014-2016 downtrend (from 1.40 to1.03). This level is around 1.21-1.22 band, maybe we might see a strong reaction from there.
Also, we can note that the region between EMA10 and EMA25 is pretty well working as the "buy the dips" level.
I believe that the we are very near to the point of taking short position on EURUSD, but not now yet. I will wait for two confirmations:
- A clear break of Fibo 78.6 retracement level of the latest upward leg, confirmed with at least one daily close
- Price level falls well below EMA25, confirmed with three daily closes
The closest resistance level is Fibo 50.0 retracement level of 2014-2016 downtrend (from 1.40 to1.03). This level is around 1.21-1.22 band, maybe we might see a strong reaction from there.