EURUSD: Renewed sense of the Dollar regaining lost ground is pushing through [Video]
The intraday volatility continues and a renewed sense of the dollar regaining lost ground is pushing through. After Tuesday’s decisive strong bear candle, an intraday failure at $1.1365 before EUR/USD fell hard in the US session and the retracement is gathering momentum. With two decisive closes below the 23.6% Fibonacci retracement (of $1.0775/$1.1492) around $1.1325, the way is open towards 38.2% Fib at $1.1220. The old breakout highs of $1.1200/$1.1240 where old resistance becomes new support, are now a realistic pullback zone. It seems increasingly that intraday rallies are becoming a chance to sell. Subsequently, it will be interesting to see how the bulls respond today. Already a move towards the 23.6% Fib has again attracted sellers again this morning, in a move similar to yesterday’s session. Momentum indicators are rolling over, with a sell signal bear cross on Stochastics now present. With rallies increasingly fading, a retreat towards the 38.2% Fib is likely now, with a close under $1.1200 being the next corrective signal. The ECB will add in an extra layer of volatility today too.
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