Forex technical analysis: EURUSD trades around the Fibonacci levels
Stays above the 50% retracement
Yesterday, the EURUSD stalled at the 50% of the move down from the March 27th high at 1.07374 (the high reached 1.07366) . The corrective fall moved to the broken 38.2% at 1.06977 (the low reached 1.06993). Ping ponging between the Fibonacci levels.
Today, the price moved to and through that 50% ceiling, corrected down to it, and moved up to the 61.8% retracement level at 1.07771 (the high reached 1.07751). Sellers leaned against that Fibonacci level. The move back down and returned to the 50% area at 1.07374 (the recent low reached 1.0740). More ping ponging between Fibonacci levels. This time the 50% and the 61.8% levels.
Traders are in sync with Fibonacci levels and leaning.
We are currently in between the 50% and the 61.8%. The buyers are more in control above the 50% level, but they know the hurdle ahead (the 61.8%). Get above and it opens up the upside more. The 1.0800 level, then some swing levels in the 1.0816-24 area. The 200 day MA at 1.0842 is another upside target if things get going to the upside (just to be aware). The 200 day MA was breached on March 27th but that break failed (see green overlay line on the chart above).
Move below the 50% and look for the buyers to give up. The 1.0697- 1.0700 area should be targeted for another test.