Euro is falling

Right now Eurusd is still moving down. When we check daily chart, we can see that 50% retracement line is a strong resistance. I would watch the red line which is a 50 Moving Average. Close below it may be a sign that bulls are in trouble.

Daily chart of Eurusd

Daily chart of Eurusd

Let’s check 4 hour chart for more information. We can clearly see that 200 SMA and the blue trend line are possible support levels for Eurusd. That of course if there will be a continuation of move down. 1.348 level is now a strong resistance and it may be hard for price to move back above it.

4 hour chart of Eurusd

4 hour chart of Eurusd

At the moment any option is possible. I try to be very careful when I am trading. Yesterday we have seen some massive drop in gold prices, and I have always my stop losses in place because of that possible scenarios.

We can follow the latest price action on lower time frame, for example 30 min. chart. We have a clear last swing from yesterday, which we can use to draw retracement lines. There was a correction to 23.6% Fibonacci retracement line and now price is below 0% Fibonacci line. If there will be a continuation of move down, Fibonacci extension lines from that chart should work fine.

30 min. chart of Eurusd

30 min. chart of Eurusd

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