EUR/USD 3-Year Highs Nears Fibo ResistanceThe Fibonacci retracement drawn from the 2021-2022 move in EUR/USD has continued to produce inflections in the pair. It caught the high in 2023 at the 61.8% retracement of 1.1275. And then last year, it set the low in April that led into a vigorous bounce into the end of Q3. Along the way, the 50% marker of that major move was a sticking point producing multiple inflections on both sides of the pair.
And then as EUR/USD came into 2025 sliding lower, it was the 23.6% retracement that came into play to catch the lows at the 1.0200 handle in January. In February, bulls held a higher-low just above that price and by March, prices were ready to jump-higher.
More recently it was the 61.8% retracement at 1.1275 that was back in the picture and with EUR/USD breaking out now to fresh three-year-highs, the look goes up to the next level in the Fibonacci sequence at 1.1686, which is the 76.4% retracement from that same major move.
Notably, EUR/USD is back into overbought territory on weekly RSI and there's also a rising wedge here, often approached with aim of bearish reversal. All that said, bulls are still making the push but if we do see a USD turn stage around quarter-end or the start of Q3, I think EUR/USD remains one of the more attractive venues to seek that out. Meanwhile, both GBP/USD and USD/CAD remain of attraction for USD-weakness to continue. - js
