Category: Trading idea

Fibonacci retracement is a popular trading strategy among forex traders. Since the importance of technical analysis cannot be understated, traders choose to utilise indicators such as Fibonacci retracements to assist them in the prediction of future price changes and positions. It is these trends that enable traders to know when and on what asset they should invest in.

EURUSD pair The medium-term uptrend in the EURUSD pair has come to an end and last week the price broke the key support level at 1.09553.There has been a massive confusion into the mind of investors about the next move of the EURUSD pair but traders are somewhat relaxed since the pair has broken significant support level and the U.S dollar has gained some strength in the market over the past week. The first key support for this pair lies at 1.08206 level where the pair might find some support for a minor bullish retracement. In the upcoming week, ECB President Mario Draghi is going to deliver his speech about the current performance of the European economy. Though the pair is strongly bearish technically but the professional traders are overly cautious about upcoming ECB press conference. If the pair manages to breach the critical support level at .107110 then we will see a strong drop in the EURUSD price towards the next critical support level at 1.05218.Traders are expecting a significant amount of support from that level since the price has respected that area many times in the past. A clear decisive break below the 1.05218 level will bring strong bearish momentum in the market towards the next critical support level at 1.03730.Shorting this pair at the current level will be an immature act since the price is trading too close to the support level and the FED has not given any clear indication about the interest rate hike. In…

EURUSD pair The medium-term uptrend is at risk since the newly formed bearish trend line is providing significant amount resistance to this pair at 1.1220 level. In the last week the pair struggled very hard to overcome the bearish trend line resistance but ultimately price closed below the trend line resistance level. This week is very important for the EURUSD pair since the pair is most likely to break the critical resistance level at 1.1220 level. However, the mighty U.S dollar has recovered its losses to a certain extent and economic researchers are suggesting that there is 67% chance of rate hike in the month of December. Investors are overly cautious about the FOMC meeting minutes in this week. A hawkish statement will clear the resistance level at 1.1220 level. A valid break of that level will again bring the bulls in the market. The first initial bullish target for this pair would be critical resistance level at 1.1450 level. Professional traders are waiting for the price to reach this level to short the EURUSD pair in favor of the long-term bearish momentum in the market, however, if the pair manages to breach that level then we will see a strong bullish rally in the pair towards the 1.1600 level. On the contrary, if the critical resistance level at 1.1450 level provides enough selling pressure to this pair then we will see a decent southward move towards the critical support level at 1.1180 level. A daily closing below that level…