By Russell, ForexYard – The dollar has significantly gained against the euro and has paused in the recent downward trend at the support line which coincides with the 23.6% Fibonacci retracement level on the 4-hour chart.
The EUR/USD made a sharp move lower during Friday’s trading and that move has continued into Monday’s European trading session.
However, the pair has reached a technical barrier at the price of 1.3443. This is the 23.6% Fibonacci retracement level from a downward trend that began on February 3rd.
The EUR/USD has encountered technical resistance at this support level before. Following a failed breach of this price, the pair made a move higher to1.3800.
If the EUR/USD makes a significant breach of the 1.3443 support level, the pair could fall to the levels of the double bottom pattern near the price of 1.3280.
A failure to breach the support could send the pair back to the 38.2% Fibonacci retracement level at a price of 1.3550.
Forex Market Analysis provided by Forex Yard.
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