By Russell Glaser – Looking at the daily chart a few major Fibonacci numbers stand out and may provide the next target for the EUR/USD.
Following a breach below the rising support line off of the October lows, the EUR/USD switched from a consolidation phase and into a new downtrend.
From September to November the EUR/USD made a strong bullish move from the level of 1.2643 to a height of 1.4281. A Fibonacci retracement shows the pair has already used both the 38.2% level as a resistance and the 50% retracement level as a support. Judging from this price behavior it is reasonable to assume that the pair will continue lower to the 61.8% retracement level which lies at a price of 1.3270.
The August high of 1.3330 should stand out as a significant support level on the way as well as the rising trend line from the June and September lows.
Forex Market Analysis provided by ForexYard.
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