Eur/usd was falling strong in last days. There were so many great setups on different time frames, but let’s look just at the few examples.
Eur/usd 1-hour chart
On 1 hour chart there were many good setups. One of the recent one was rather easy to spot. We had an ABC move with correction up to 61.8%. After that price started to move down and there was a breakdown below support line and 0% line. The move ended when price reached 138.2% Fibonacci extension. Actually, we saw there a double bottom and bulls returned to the game.
Eur/usd daily chart
Now some bigger time frames. On daily chart down trend is very strong. The strong move in the end of June was only a correction to point C (78%) and since then we are watching a selloff. Price broke through support line and stopped at 161.8% Fibonacci extension. We may see some bounce up from here, but down trend is still strong.
Eur/usd weekly chart
On weekly time frame we can see huge ABC formation. Since the end of correction to C in January we are watching a strong selloff. Now price has reached 127% extension line. You can see that earlier at 118% extension price has found a support for a moment. What about 127%? On many times 127% extension may act as a strong support. We have to look closely if there will be some bounce from here and if support at 1.2170 is going to hold. If not, move to the 138% extension (1.2) is possible.
Look one more time at daily chart, where price stopped at 161.8% extension. On weekly in that area is 127% extension. Will bulls take their chance and start buying? Very interesting situation!