Overview:
- The EUR/USD pair has rebounded from the major support level of 1.0930 and it is approaching its support now in order to test it. Moreover, it should be noted that the level of 1.0930 represents the weekly pivot point this week. So, it will probably start moving upside in this area and recover again. Therefore, buy at this spot with the first target at 1.0986 to form the double top and continue towards 1.1008 (it should be noted that this level will form the weekly resistance 1). On the other hand, in case of a breakout at 1.0927, a good place for stop loss is seen below 1.0915.
Observations:
- If the trend is upward, then the strength of the currencies will be defined as following: EUR is in an uptrend and USD is in a downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account.
- Fibonacci is in a trading range; it looks like the trend is trapping and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
