EUR/USD Tests 78% Fibonacci Level

Posted Friday, October 11, 2019 by
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.

EUR/USD, Daily Chart

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.

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