The Euro spent the last 3 days of the previous week trying to hold above the 1.18 landmark: Wednesday’s lo was 1.1802, Thursday’s lo was 1.1805 & Friday’s lo was 1.1810. After extensive research, I believe that the level that is providing support in this area is the Marji 42.9% retracement level 1.1804.
As long as the single currency is surviving above this level, it might attempt to recover, but if this level gives way, the bears will emerge victorious in these areas. Ergo, our initial support for today is 1.1804.
A penetration below this base should open the way lower towards important short-term retracement levels at 1.1758 & 1.1717, and if these levels do not hold, the bears will continue digging deeper towards the current 2021 yearly lo 1.1664, and maybe even towards the lowest price in the past 14 months: 1.1603.
Initial resistance is provided by the falling trendline from September 3rd daily hi, which is currently running around 1.1845. A break above this level is needed in order to open the way higher towards a more important resistance at 1.1879. A break above this level would be a strong bullish sign, indicating that the price could go back to trade above the 1.19 landmark. In this case, 1.1922 & 1.1965 make very interesting targets, ahead of the psychological level at 1.20, or to be precise, the Marji 57.1% retracement just above it.
Support:
• 1.1804: Marji 42.9% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1758: Fibonacci 61.8% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1717: Fibonacci 78.6% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1664: August 20th daily lo, which is also the lowest price seen in 2021 so far.
• 1.1603: November 4th 2020 daily lo, the lowest price seen in the past 14 months.
Resistance:
• 1.1845: The falling trend line from September 3rd daily hi.
• 1.1879: Marji 71.4% for the falling move from September 3rd hi 1.1909 to September 8th lo 1.1802.
• 1.1922: Marji 42.9% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
• 1.1965: Fibonacci 50% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
• 1.2008: Marji 57.1% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
Trend:
• Short-term: UP, as long as we are trading above 1.1804.
• Medium-term: Down, as long as we are trading below 1.2094.
• Long-term: Down, as long as we are trading below 1.2094.
Good Trading & Good Luck!
Munther T. Marji CMT
As long as the single currency is surviving above this level, it might attempt to recover, but if this level gives way, the bears will emerge victorious in these areas. Ergo, our initial support for today is 1.1804.
A penetration below this base should open the way lower towards important short-term retracement levels at 1.1758 & 1.1717, and if these levels do not hold, the bears will continue digging deeper towards the current 2021 yearly lo 1.1664, and maybe even towards the lowest price in the past 14 months: 1.1603.
Initial resistance is provided by the falling trendline from September 3rd daily hi, which is currently running around 1.1845. A break above this level is needed in order to open the way higher towards a more important resistance at 1.1879. A break above this level would be a strong bullish sign, indicating that the price could go back to trade above the 1.19 landmark. In this case, 1.1922 & 1.1965 make very interesting targets, ahead of the psychological level at 1.20, or to be precise, the Marji 57.1% retracement just above it.
Support:
• 1.1804: Marji 42.9% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1758: Fibonacci 61.8% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1717: Fibonacci 78.6% for the rising move from August 20th bottom 1.1664 to September 3rd top 1.1909.
• 1.1664: August 20th daily lo, which is also the lowest price seen in 2021 so far.
• 1.1603: November 4th 2020 daily lo, the lowest price seen in the past 14 months.
Resistance:
• 1.1845: The falling trend line from September 3rd daily hi.
• 1.1879: Marji 71.4% for the falling move from September 3rd hi 1.1909 to September 8th lo 1.1802.
• 1.1922: Marji 42.9% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
• 1.1965: Fibonacci 50% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
• 1.2008: Marji 57.1% for the whole falling move from May 25th top 1.2267 to August 20th lo 1.1664.
Trend:
• Short-term: UP, as long as we are trading above 1.1804.
• Medium-term: Down, as long as we are trading below 1.2094.
• Long-term: Down, as long as we are trading below 1.2094.
Good Trading & Good Luck!
Munther T. Marji CMT