Two different Fibonacci Tools in EURUSD
Fibonacci analysis uses two different applications, in the first case a Fibonacci Retracement tool is applied in the upward movement while in the second case the Fibonacci Retracement tool is applied in the downward movement.
The reason that two different Fibonacci systems are used is to identify the main trend movements as well as the secondary correction trend movements.
In the case of the application of the FR tool in the upward trend, the cessation of the downward movement at the price level around 61.8 FR can be seen. This fact indicates that the downward trend of the currency pair in recent days was the necessary "rest".
On the other hand, in the case of the application of the FR to the downward movement, it seems that the current upward trend is constantly interrupted at the price level around 50.0 FR.
In conclusion, the analysis of the two FR systems shows that it is necessary to wait until the prices "find" the path they want to follow and finalize whether it is the beginning of a new downward trend or the necessary corrective movement of the upward trend.
The reason that two different Fibonacci systems are used is to identify the main trend movements as well as the secondary correction trend movements.
In the case of the application of the FR tool in the upward trend, the cessation of the downward movement at the price level around 61.8 FR can be seen. This fact indicates that the downward trend of the currency pair in recent days was the necessary "rest".
On the other hand, in the case of the application of the FR to the downward movement, it seems that the current upward trend is constantly interrupted at the price level around 50.0 FR.
In conclusion, the analysis of the two FR systems shows that it is necessary to wait until the prices "find" the path they want to follow and finalize whether it is the beginning of a new downward trend or the necessary corrective movement of the upward trend.
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