In today’s post I wanted to write more about situation at Eurusd. In last post Euro is falling I wrote that you can follow latest action on 30 min. chart. Below we can see a continuation of that move (on 1hour chart so it is easier to see whole move).
After small correction to 23.6% retracement line, there was a break below 0% line (the recent low). Next there was a continuation of move down. The move ended almost exactly at 200% Fibonacci extension line.
In last entry about Euro I mentioned that 200 Simple moving average from 4-hour chart might work as a support. This time I was right and price managed to close above that line. That is a signal, that support here is strong.
The direction of next move is still unclear. First of all, Eurusd is above 200 SMA from 4-hour chart. On the daily chart we can see that there is a clear trend line, which also work as a support.
If we are looking for continuation of move up, then we have 61.8% Fibonacci retracement line as another support (together with trend line).
I closed my short positions and I now just wait. I won’t open short position on eurusd until it breaks below that green trend line. The other scenario is that supports are going to hold and there will be another move up. Then I will be looking for long opportunities.