EUR/USD Trendline Resistance Test
EUR/USD has built a bull flag with the pullback that started in late August. As looked at on Friday, that pullback showed in a relatively clean channel, and the resistance side of that formation has already come into play in early trade this week. Given the trend that started in June and ran through August, there's a couple levels of importance for buyers to hold to keep the door open for topside continuation scenarios.
The 23.6% retracement of that trend plots at 1.1076 and this is what held the highs while producing a tombstone doji on Friday. And below that, the 38.2% retracement is confluent with the 1.1000 psychological level.
If buyers can't hold either of those supports there's another major level below that at 1.0943 which is the 50% mark of the longer-term major move spanning from the 2021 high to the 2022 low. Notably, the 61.8% of that move caught the high last year, and the 38.2% retracement has helped to set the low so far this year. - js
The 23.6% retracement of that trend plots at 1.1076 and this is what held the highs while producing a tombstone doji on Friday. And below that, the 38.2% retracement is confluent with the 1.1000 psychological level.
If buyers can't hold either of those supports there's another major level below that at 1.0943 which is the 50% mark of the longer-term major move spanning from the 2021 high to the 2022 low. Notably, the 61.8% of that move caught the high last year, and the 38.2% retracement has helped to set the low so far this year. - js
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