EUR/USD: Golden Fibonacci Ratio Support
Candy Matheson | Mar 07, 2013 12:25PM ET
I last wrote about the EUR/USD Forex pair on February 7. At the time, price was trading around 1.3400.
Since then, that price has fallen then bounced somewhat and is now at 1.3095 -- as of 11:29 am EST on Thursday -- and is trading just above a confluence of two Golden Fibonacci Ratios (61.8%), which is near-term support at 1.3045, as shown on the Weekly chart below.
Trade Range
Price is trading in between the 50 sma (red) and 200 sma (pink). These moving averages are in a bearish Death Cross formation and, as such, price is still under its bearish influence. A hold above 1.3045 could send it back up to retest its last swing high...a hold above that level could, finally, propel the EUR/USD higher to, eventually, reverse the moving averages to form a bullish Golden Cross. This could take some time to play out, however, and we may see further range movement around both moving averages until then....otherwise, a drop and hold below the 50 sma could send price back down to retest the 50% Fibonacci retracement level at 1.2125, or lower.
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