EUR/USD Hits 50% Fibonacci Retracement
Monitoring EUR/USD’s Retracement
For traders attuned to Fibonacci levels, EUR/USD has emerged as an intriguing market to watch.
The rally observed between October and November halted at the 61.8% retracement level from the summer sell-off. In recent weeks, EUR/USD has retraced part of that October-November surge, hitting the pivotal 50% mark after a strong showing in Friday's non-farm payrolls report (199k jobs added versus an expected 185k) and a drop in the unemployment rate (3.7% versus an expected 3.9%).
Remarkably close to the 50% Fibonacci retracement lies the Volume Weighted Average Price (VWAP), anchored to October's lows. This serves as a gauge of the true average price for EUR/USD bulls. Additionally, situated beneath the anchored VWAP is the 61.8% Fibonacci retracement level, holding harmonic significance due to its symmetry with the peak of the Oct-Nov rally (visible in the daily candle chart below).
EUR/USD Daily Chart
Past performance is not a reliable indicator of future results
Lower Timeframe Analysis
When analysing retracements, it’s often helpful to drop down a timeframe. A glance at EUR/USD’s 4-hour chart (below) underlines that the market is currently trending lower within an orderly descending channel.
This is useful for EUR/USD bulls looking to time their entry. Entering a trade at these fibonacci levels means traders are going against the short-term trend, waiting on a longer-term pattern break may be a better confirmation of price continuing with short-term momentum.
EUR/USD 4-Hour Candle Chart
Past performance is not a reliable indicator of future results
Summary:
EUR/USD's pivotal position near the 50% Fibonacci retracement, influenced by recent economic data, attracts traders. Analysis of key levels and the 4-hour trend suggests a cautious approach for EUR/USD bulls.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
For more information on Fibonacci retracement levels check out Fibonacci: Fundamentals.
https://www.tradingview.com/chart/GOLD/asKMTpXp-Fibonacci-The-Fundamentals/
For traders attuned to Fibonacci levels, EUR/USD has emerged as an intriguing market to watch.
The rally observed between October and November halted at the 61.8% retracement level from the summer sell-off. In recent weeks, EUR/USD has retraced part of that October-November surge, hitting the pivotal 50% mark after a strong showing in Friday's non-farm payrolls report (199k jobs added versus an expected 185k) and a drop in the unemployment rate (3.7% versus an expected 3.9%).
Remarkably close to the 50% Fibonacci retracement lies the Volume Weighted Average Price (VWAP), anchored to October's lows. This serves as a gauge of the true average price for EUR/USD bulls. Additionally, situated beneath the anchored VWAP is the 61.8% Fibonacci retracement level, holding harmonic significance due to its symmetry with the peak of the Oct-Nov rally (visible in the daily candle chart below).
EUR/USD Daily Chart
Past performance is not a reliable indicator of future results
Lower Timeframe Analysis
When analysing retracements, it’s often helpful to drop down a timeframe. A glance at EUR/USD’s 4-hour chart (below) underlines that the market is currently trending lower within an orderly descending channel.
This is useful for EUR/USD bulls looking to time their entry. Entering a trade at these fibonacci levels means traders are going against the short-term trend, waiting on a longer-term pattern break may be a better confirmation of price continuing with short-term momentum.
EUR/USD 4-Hour Candle Chart
Past performance is not a reliable indicator of future results
Summary:
EUR/USD's pivotal position near the 50% Fibonacci retracement, influenced by recent economic data, attracts traders. Analysis of key levels and the 4-hour trend suggests a cautious approach for EUR/USD bulls.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
For more information on Fibonacci retracement levels check out Fibonacci: Fundamentals.
https://www.tradingview.com/chart/GOLD/asKMTpXp-Fibonacci-The-Fundamentals/
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.