EUR/USD, GBP/USD Both Looking At Fibbs As Dollar Falls
James Hughes | Nov 24, 2017 13:08
The US dollar is on the backfoot so far today, which has given the euro a chance to push ahead to some key upside resistance levels. We are currently looking at the Fib retracement level on the upside at 1.1884 as the key level for today’s trading, with any breach to the upside leaving a big gap up to the next levels that could well be all the way up at 1.1930 and then 1.2000.
Shorter term the chart still looks strong after the moves of the last couple of days but with the volume low, it could be a normal continuation we are looking at, which could point to a slight correction into the close or on the open on Sunday night.
GBPUSD is in the same situation with US dollar weakness and is also looking at an upside Fib retracement as its key next level of resistance. After this week’s headline in the UK we have seen a far degree of volatility on sterling pairs, and with the grim growth picture painted by the Chancellor on Wednesday you could have expected some more downside. But the US dollar weakness has really made the pound the more attractive proposition.
A continuation of this move takes us back up towards the 50% fib retracement of the recent move from highs at 1.3655 to the lows at 1.3026. The level is 1.3340, with any break to the upside looking to test the 61.8% at 1.3415. To the downside we would look at the trendline support down around the 1.3120’s.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.