Latetly both US indexes and majors were rising. From the beginning of this week we have a correction. Or maybe this is end of rises?
First, lets have a look at SP500 index. I wrote before why it stopped in that area. For now we have a small correction, which for now ended on 23.6% retracement level and 20 moving average. This is just around 1300 level, so important level to watch. Break below that level may bring move down to next retracement levels.
Of course there is a chance that price is going to move up, but for now it looks like it is undecided.
Now lets move on to eurusd. Around 1.3111 there are to Pivots – weekly and monthly. It looked like they are going to hold, but today price went lower. As yuo can see from chart, almost exactly to 61.8% retracement line. This does not mean that we are going to see move up from that level. There is such a chance, but it is a good idea to wait for another confirmation.
Still, it is good to know that price is respecting Fibonacci so we can plan our trades :).
If there will be confirmation, than we are going to look at extension lines as a possible exit level.
Oh, it is worth to check gold. After strong rise it stopped at 78% retracement level, which is around 1740$. It is very important place, because 78% lines on many times are strong resistance and investors who went long, are taking profits here. If bulls are stronger, price shoud move above 1740$ level. You can clearly see this lines at weekly chart: