Fibonacci Level 38.2 Continues to Support EUR/USD

Published on Tuesday December 7th, 2010 at 06:36PM by Forex_Nation

We are seeing the EUR/USD continue to consolidate in the 1.3400/1.3250 range. I continue to watch for a sustained break of 1.3270 where the 38.2 fib. level held price action up yesterday and again so far today as well. In the chart below we see both the 38.2 fib level, 200 MA and daily S1 have acted as support for the past two days. I think we can call the 1.3250/60’s a decent support level to watch! By the way, my fib level was drawn on the hourly chart from 1.3767 to 1.2968.


  

   


Not too much fundamental data to drive either currency for today or tomorrow, but look at the economic calendar for Thursday as we have some moderate economic reports that could be the kick in the pants this currency pair needs in order to see some decent trending price action. I’m looking to place small orders at the range borders I described above with fairly tight stops (40 pips). Good luck trading!

  • 2 comments
  • Go to butandingpanda's profile

    On Wednesday December 8th, 2010 at 07:34AM by butandingpanda -

    Yipes! It looks like price already broke down below the support area. Well actually, it just keeps on falling. What's your bias for the pair now? Good luck with your trades Forex N.! :)
  • Go to Forex_Nation's profile

    On Wednesday December 8th, 2010 at 02:12PM by Forex_Nation -

    The higher timeframes look like we we are going south, but we are also really close to the weekly S1. In cases like this I would expect to see a little bit of choppy price action. Plus I've been told that there are conflicting recommendations from the big boys: Citi recommended EUR shorts this morning while UBS is telling customers to buy. Once we approach the former support level of 1.3270 I'll be watching to see if price action retreats again or ignores that level and continues north. Till then it's anyone's guess.

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