The depreciation to the support trend line of the upward EUR/USD trend has been expected to happen for some time now and today it finally became a reality.
1.2200-1.2240 is a very strong support zone and my expectation is that here there will be a major struggle between the bulls and the bears before one of the sides takes over.
The pair is yet to reach and break out below the critical 50% Fibo level of the last move north from 1.15529 to 1.25556 and until that happens the scenario for a renewal of the move to the upside will not be invalidated.
I think that in case there is a breakout, however, we can expect a large corrective drop to 1.17 or even lower.
For the moment we should follow how the pair develops in the support zone around 1.2200-1.2240.
The fundamentals tomorrow should have a big effect on it.
ReplyDeleteGood posts, very helpful for all traders.
ReplyDeleteIt's interesting to see how will develop today.
ReplyDeleteA deeper correction could be on the way.
ReplyDeleteI believe it will retrace further.
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteGood insight.
ReplyDelete