EUR/USD Tests 78% Fibonacci Level
Shain Vernier • 1 min read
The EUR/USD is putting together a solid three-day winning streak and a bull run of almost 100 pips. Consistent bids have hit the forex major as optimism over a potential Brexit deal has taken over popular sentiment. In addition, stiff opposition to last month’s ECB QE package has many currency traders thinking that the EUR/USD’s 2019 bottom may be in. Subsequently, a test of daily Fibonacci resistance has come to pass.
EUR/USD Tests 78% Fibonacci Resistance Level
Today’s action has been hot and heavy in the EUR/USD, with rates briefly eclipsing 1.1050. While the long-term bearish trend is very much intact, the tides may be turning. Barring any major U.S./China trade war breakthroughs ahead of today’s close, this market is positioned to settle the week in the green.
Here are the key levels to watch for the rest of today and into next week:
- Resistance(1): 78% Current Wave Retracement, 1.1058
- Resistance(2): September High, 1.1109
Overview: In a Live Market Update from yesterday, I issued a short trade recommendation from just beneath the daily 78% Fibonacci Retracement at 1.1052. The play has performed relatively well, producing a maximum gain of 17 pips. At press time (11:30 AM EST), this trade is hanging tough, modestly in the green.
The key technical area facing the EUR/USD is 1.1050-58 zone at the daily 78% Fibonacci Retracement. If this level gives way, a test of September’s High (1.1109) will very likely be in the cards for early next week.