Will the key EURUSD support be broken?
According to the EURUSD weekly chart, the downtrend movements of the market that started at the 2014 Rand resistance peak of 1,4000 were stopped at a low of 1.0460 and the EUR / USD rate was able to adjust its correction to the rate Rand $ 1.2500. This Fibonacci has been plotted at Rs 1, 4000 to the bottom of 1.0460. But the resistance of the trend line and the Rand rate of 1 2500 prevented further upward moves, which resulted in a new downtrend rally to a level of 23.6% Fibonacci.
The modification of the 23.6% Fibonacci retracement was followed by a retracement of the restoration of the currency pair to the 38.2% Fibonacci range at the Rand rate of $ 1,1800. But the resistance of these levels has pushed the market back to the 23.6% Fibonacci range. Last week, the EUR / USD exchange rate strengthened at a positive return from the $ 1,300 Rand rate to $ 1,500. But the Rand rate resisted in the form of resistance and returned the market again to the 23.6% Fibonacci range.
If in this week’s trades, vendors go below the Fibonacci retracement of 23.6% at the Rand rate of $ 1,1300, the downside trend of EURUSD to support 1.1118 (the price of June 2016), the Rand rate is 1,000 and 1. 0850 will be smooth. The market price structure also marks the beginning of the downtrend in the market. The new peaks are priced below the previous peaks, and the bottom floors are lower than the previous price floor. For this reason, the failure of $ 1.13 (the previous market floor) could signal a continuing downtrend.
Conversely, if the Rand rate is $ 1,300 for the third consecutive support, we can say that the EURUSD will remain neutral in the neutral phase between the levels of 1,1800-1,1300, and the pair could then The resistance side will return to 1,1400, 1,500, and 1,1600.