EUR/USD-The Key Technical Level For The Rest Of 2017
Shain Vernier • 1 min read
Since it hit 1.2091 back in early September, the EUR/USD has given back over 400 pips to the market. Most of the losses are due to weaker than expected economic metrics from the Eurozone and dovish policy put forth by the European Central Bank (ECB). Active traders have also played a part in the action, consistently driving the Euro lower against the dollar..
Trading the EUR/USD will be interesting for the remainder of the year. There is one important price level that stands out from the rest.
One of my preferred technical tools is Fibonacci retracements. They are valuable in numerous ways, useful for market entry and exit as well as in the identification of market state.
EUR/USD, Daily Chart
Macro Fibonacci retracements, or those derived from larger time frames, prove their validity time and again. For the EUR/USD, the key macro Fibonacci level is the 38% retracement of the yearly range, 1.1422. This level will be a catalyst for market participation during the fourth quarter of 2017. Be sure to mark it on your charts!
Here is the daily roadmap for the EUR/USD:
Resistance(1): 38% of current bear run, 1.1674
Resistance(2): 20 Day EMA, 1.1704
Support(1): Swing low, 1.1574
Support(2): 38% retracement of yearly range, 1.1422
Overview: This week’s action will largely depend upon technicals. With a somewhat empty economic calendar, volatility should remain relatively constant. The pronounced “L” pattern on the daily timeframe is likely to extend horizontally as we move further into the week.
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