Fibonacci Keeps EUR/USD In Side Trend
Admirals | Apr 25, 2013 08:10AM ET
Wednesday’s scenario did not change much. In our latest analysis, we wrote that 50 and 28.3 Fibonacci were the closest S/R levels. Both sides tried to break those levels a few times, but all attempts were unsuccessful. Finally, buyers succeeded during the Asian session.
There is a chance that the recent side trend has come to an end. The price was heading towards the end of the falling wedge formation (blue lines) that was closing the bearish correction movement (which started when the price hit 1.32). An upswing during the night caused a bullish breakout which was expected due to the bullish characteristic of this falling wedge.
Technically this situation promotes buyers, but fundamentally it is hard to be optimistic on this pair when we consider the economic troubles of the Eurozone. The European session started with the price coming back to the 38.2 Fibonacci level which will be now the closest support. If buyers manage to defend it, we can expect a rise on this pair. If the price comes back below and inside the falling wedge, we should rather be looking for a place to sell euro.
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