It was a week with strong moves on major pairs (move down from top almost 400 pips on eur/usd). All thanks to the ECB’s President, Mario Draghi, who said that the Central Bank is willing to review the amount of money designated to bond purchases. And euro tanked hard. I want to show you some technical background from this week, which was helpful to take right direction.
Before we move to Fibonacci tools, first weekly pivot points. In the start of the week buyers tried to breakout higher, but 100 and 200 simple moving averages stopped them. Also the whole action was taking place below weekly pivot point. For me it was a clear sign that long positions are not in the game until bulls will break above that pivot line. But in the end, sellers took initiative. 1 hour eur/usd: