EUR/USD lost a really big level this week when bears pushed through the 1.1275 Fibonacci level. This is the 61.8% retracement of the 2021-2022 major move, and that price was the swing high in 2023. More importantly for the past three weeks that level was support for EUR/USD, both before and after the failed run at the 1.1500 handle.
This move has been a big part of the sell-off in the US Dollar and as we've seen more and more bottoming potential for the Greenback on the basis of three consecutive weekly gains, the opposite has been the case for EUR/USD.
For this week, we had a descending triangle build around the FOMC rate decision, with lower-highs as resistance and horizontal support at the 1.1275 level. That formation filled in cleanly on Thursday with a breakdown, and price pushed directly down to the 1.1200 handle, which is a big level in its own right. That was the high on multiple occasions last year and to date, it hasn't shown much for support, until this week, at least.
That price led into a bounce into the close of the week but the bearish sequencing remains in-play for next week and the door remains open for a test down towards 1.1100 or perhaps even 1.1000. Notably, the 1.0943 level is related to the same Fibonacci sequence that produced 1.1275 and 1.0943 was resistance turned support just a month ago. - js
This move has been a big part of the sell-off in the US Dollar and as we've seen more and more bottoming potential for the Greenback on the basis of three consecutive weekly gains, the opposite has been the case for EUR/USD.
For this week, we had a descending triangle build around the FOMC rate decision, with lower-highs as resistance and horizontal support at the 1.1275 level. That formation filled in cleanly on Thursday with a breakdown, and price pushed directly down to the 1.1200 handle, which is a big level in its own right. That was the high on multiple occasions last year and to date, it hasn't shown much for support, until this week, at least.
That price led into a bounce into the close of the week but the bearish sequencing remains in-play for next week and the door remains open for a test down towards 1.1100 or perhaps even 1.1000. Notably, the 1.0943 level is related to the same Fibonacci sequence that produced 1.1275 and 1.0943 was resistance turned support just a month ago. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.