Do not underestimate the power of price patterns, support/resistance
, and Fibonacci. What others may consider old and useless, a quick look over the EURUSD
price action would contradict them. From November to present time we can see that the wedges
worked beautiful, before the end of 2012 the rectangle
was the king, and afterwards the triangle took its place. The support and resistance
zone worked fantastic and we can see that 1.2875, 1.3, 1.3150 and 1.34 are the stars of the show. This zones combined with 50% retrace (the big love of euro
dollar, from my point of view) but also the Fibo levels 61.8 and 38.2 worked together like a Swiss watch.
As a conclusion we might expect a consolidation between 1.34 and 1.3260. If the rise will continue over 1.34 than 1.3450 will be the next target. Good news from USA today (Building Permits, Unemployment claims and Philly Fed) might trigger some appetite for risk and sustain the euro