Technical Play: EUR/USD Stalling at Fib Resistance
EUR/USD Stalling at Fib Resistance
The EUR/USD is showing signs of stalling at the 38.2% Fib retracement of the decline from 1.3710. This level comes in at 1.3115, and can be used for short term PUT options until this level breaks clearly to the upside. We are above both the 100 and 200 period EMAs on the 4H charts (suggestive of positive momentum). But given the long term nature of the Fib level, we are more likely to meet some selling pressure here for the remainder of the day. The short term bull rally has been relatively strong, so contrarian positions here will benefit from the need for prices to correct back toward their short term averages.