$EURUSD holds resistance at 1.4759. Support now at 1.4692.
The EURUSD held resistance once again at the 1.4757/59 level this morning. This level was the low from December 7th and has been a ceiling over the last 24 hours or so (double top today). Each time the level is tested and holds increases the importance of the level from a technical basis. A move above should lead to upside momentum.
However, the holding of the level also increases the bearish bias and this morning we have seen the market rotate back down after the successful defense of the level. The price moved back down to a low of 1.4705. The move broke back below the 100 and 200 bar MA at the 1.4728 and the midpoint of the non-trending two day high to low range at the 1.4725 level. this flips the bias back to the downside (bearish). The downside support now comes in at 1.4692.
Non-trending markets lead to trending markets. It can be frustrating while it happens but the flat 100 and 200 bar MA give the bias and with both flat, the risk is limited. Keep these levels as the pivot with a bearish bias below and bullish bias above the MA levels.
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Dear Greg,
You sometimes measure the fibo for this week high/low and sometimes for the last two days high/low on the hourly chart.
I want ask for how many days’ highs/lows I use to measure the fibo on the hourly chart and on the 5m chart also?
and the direction please when I measure from up to down and when we measure from down to up?
I think this good subject among a webinar’s subjects.
Thanks n appreciation,
Regards,
S.Ghadeer
It depends. What I try to do, is look at the most recent significant high/low. Today in the reports I used the high/low range for two days mainly because it gave me the midpoint of the consolidation period. That level along with the moving averages gave me a pivot area where the see-saw favors the bullish bias or the negative bias. On the hourly chart the Fibonacci was drawn from the most recent high going back to December 3rd. We bottomed on the 9th and since that time the market has corrected but it has been more of a sideways move. I still look at it because I want to know what is a destination IF the market breaks to the upside outside of this narrow range. It may never get there but you always have to be prepared to know what potential exists. This helps to stay in trades and also gives levels to sell against later if the market does correct further.
THe point is, the Fibonaccis are variable but they should be at meaningful highs or lows.
I see…I will study that..thank you