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Technical Analysis: Euro Resistance at 1.0850; Fibo Retracement 1.0800 (38.20%)

Posted by Chris Advincula on Jan 31, 2017 6:42:15 AM


(Jan 31 Tuesday) The daily chart shows the euro having fallen from 1..1350 (July 8 2016) to 1.0350 (Dec 19) and has rebounded to 1.0770 (Jan 23) right within the 38.20% Fibonacci arc retracement. If the US dollar should fall, the immediate resistance is 1.0800 and the next one is 1.0850 whee the Oct 24 low and Dec 7 high meets.

The 14 daily moving average  (green line) shows a rebound from 1.0450 to 1.0685, while the 30 DMA (violet line) also shows a rebound from 1.0525to 1.0582. These are modest indications of the potential corrections from the 1,000 pip decline from 1.1350 to 1.0350. However, corrections, are limited to only perhaps 1.0950 (50% Fibonacci)

The 14 day relative strenght index chart shows declining tops from 67.13 (Aug 8) to 60 (Nov 7) to the most recent 56.12. It has never breached the technical 70 level, which indicates more weakness of the euro.

The Elliot wave chart below shows a postive climb to the +0.0167 top with a declining slope forming to +0.0112 at the most recent level with the spot equivalent of 1.0708.

The near term support levels are: 1.0660, 1.0620, 1.0575 (30 DMA) and 1.0450 (14 DMA)


Topics: EURUSD, technical analysis, support and resistance levels


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