EURUSD – Divergence at 50 Fib Level

EURUSD – Divergence at 50 Fib Level

The euro was paring its losses against the dollar in recent days, but we see signs that the movement the increase may have run into a brick wall

pair has resistance around 38.2 fib - July 10 high at 20 July low - and support before, but as the stressed yesterday (EURUSD - bullish bounce Off Big Fib Level), there was reason to believe that the correction would be greater. The pair then join another 100 pips before running into resistance around 1.1010 fees, 50 fib of the same movement.

This alone does not suggest that the rally is over, of course, but when combined with a bearish divergence on both the MACD and stochastic histogram, he suggested the move could be tiring

the fact that it falls on a big psychological -. 1.10 - might also add this as a key resistance level.

for now, we are still seeing a significant reversal candlestick to support the above points, although the big red candle on the hourly chart which followed the Test 50 fib was quite bearish. down below must follow the lower peaks that have since been made to provide some support, as would a break of the rising trend line from yesterday's low, although even these would not be conclusive.

or the 4-hour or daily charts seem particularly bearish quite yet despite the rejection of the 50 fib level and 1.10 at the second attempt. And while divergences highlight the dynamic fall, it is always best when they are paired with a reversal pattern in price action.

With this unlikely looking on them, a break of the ascending trend line would go some way to make this look even more bearish once. Similarly, a break from the high today suggests this level does not hold, bringing 1.1050 to 1.11 in the foyer.

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