EUR/USD is currently experiencing a retracement in the opposite direction compared to the USD/JPY. After a bullish upside movement, the pair is now in a corrective phase, seeking support levels for a potential fresh upward impulse. We observe that the 50% and 61.8% Fibonacci retracement levels hold significant potential as dynamic support areas, potentially fueling a new bullish rally in the price action.
The market sentiment suggests that long positions could be favorable in this context. As the pair finds support at these Fibonacci levels, it indicates a potential opportunity for traders to enter long positions, anticipating a continuation of the bullish trend in the EUR/USD chart.
The strength of the dynamic support provided by the Fibonacci levels adds weight to the possibility of a renewed upward momentum in the pair. As such, traders are closely monitoring these critical levels to assess the timing and potential entry points for their long positions.
By capitalizing on the bullish rally in EUR/USD, traders seek to benefit from the expected upward movement and potential gains as the price continues its bullish trajectory. However, as with any trading strategy, risk management remains paramount to safeguard against unexpected market fluctuations.
In summary, the current retracement in EUR/USD presents an opportunity for traders to consider long positions, given the dynamic support provided by the 50% and 61.8% Fibonacci retracement levels. The overall market sentiment supports the anticipation of a fresh impulse to the upside, continuing the bullish trend in the chart.