EURUSD approaching resistance, potential bearish reaction

15 Mar 2018

EURUSD bounced nicely off its support at 1.2343 (50% Fibonacci retracement) where it is approaching its 1st resistance at 1.2444 (61.8% Fibonacci extension x2, Horizontal swing high resistance) where a potential reversal may occur, pushing price back down to its 1st support or 2nd support at 1.2277 (61.8% Fibonacci retracement, horizontal swing low). If it breaks past this level it could also fall to its 3rd support at 1.2162 (61.8% Fibonacci retracement, L T 38.2% Fibonacci retracement, multiple swing low support). We have also identified another resistance at 1.2522 (100% Fibonacci extension, multiple swing high resistance).

Stochastic (89, 5, 3) shows it approaching its resistance at 98.04% where a corresponding reaction could occur.

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