Confluence Watch: Active EUR/USD Resistance
From a technical standpoint, the EUR/USD exchange rate has spent the last few days meandering around resistance on the daily timeframe.
With the trend leaning in favour of sellers, resistance is seen between $1.0753 and $1.0726, made up of the following technical tools:
• Horizontal resistance at $1.0739.
• Quasimodo-support-turned-resistance at $1.0726.
• Ascending support-turned-resistance line, taken from the low of $1.0695.
• 1.618% Fibonacci projection ratio at $1.0753 (this is also referred to as an ‘alternate’ AB=CD bearish formation).
• 38.2% Fibonacci retracement ratio at $1.0749.
• 50.0% retracement ratio at $1.0743.
The above components, combined with the downtrend, suggest that sellers may eventually emerge from the noted support zone, targeting year-to-date lows of $1.0601, followed by longer-term monthly support from $1.0516.
With the trend leaning in favour of sellers, resistance is seen between $1.0753 and $1.0726, made up of the following technical tools:
• Horizontal resistance at $1.0739.
• Quasimodo-support-turned-resistance at $1.0726.
• Ascending support-turned-resistance line, taken from the low of $1.0695.
• 1.618% Fibonacci projection ratio at $1.0753 (this is also referred to as an ‘alternate’ AB=CD bearish formation).
• 38.2% Fibonacci retracement ratio at $1.0749.
• 50.0% retracement ratio at $1.0743.
The above components, combined with the downtrend, suggest that sellers may eventually emerge from the noted support zone, targeting year-to-date lows of $1.0601, followed by longer-term monthly support from $1.0516.
Note
Quick update - EUR/USD sold off nicely from the area of confluence!
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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.