EUR is overbought due to the American QE3 news, rising for more than 1000 pips with no decent retraction.
We should stay alert to the 1.3200 resistance area , which could lead EUR to a retracement towards 1.3000 or the rising channel bordar that was broken.
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its measured from the top down because it is a downtrend. After making a new low, it retraces back up and thats where the 0.618 fib level comes into play. then it bounces off of that and heads back down.......
100 is on top, because we are talking about retracement, a percentual of the previous deviation. If the price retraces all the movement back to the top, it has retraced 100%, so that's why 100 is on top..
.belive me :D