EURUSD Analysis November 2015 (W)
Created on Sunday, 01 November 2015 14:10
Written by Austin Galt
The EURUSD has traded down as expected recently and is now at the first area noted for a low to come in. let’s quickly revisit the weekly chart.
EURUSD WEEKLY CHART
The Bollinger Bands show price dropping like a rock down to the lower band. It is possible for price to drop even further and push into the lower band but I favour prie bouncing straight off and heading back up. Let’s see.
Previous analysis outlined the potential for a broadening top formation but I currently doubt that scenario and prefer to see a higher put in place now.
I have added Fibonacci retracement levels of the most recent move up. This has been shown in previous analysis with the expectation for a deep retracement and price has done just that by clipping the 88.6% level which stands at 1.0912.
I have added a Fibonacci Fan which shows the low last week was bang on support from the 88.6% angle. That looks like a nice set up for low.
The Stochastic and MACD indicators are both bearish so some caution needs to be heeded but they should resolve themselves should price head back up now.
There is no change to the final bear rally target being around the 1.26 mark as outlined in previous analysis.