Yesterday the euro tried to make a new record, but lost upward momentum, carrying a maximum so far of 2013 at 1.3403, strong resistance level. If the euro tries to rise in price, the road will be very difficult to 1.35, as the pair stopped the 61.8% Fibonacci retracement. This indicator shows the level where the fall began in 1.4940, to 1.2018 minimum. You can see from the chart the line of the 61.8% Fibonacci, crossing at the level of 1.34.
It is most likely that the pair is trying to consolidate or break this level, but the indicators are showing overbought level, the nearest support level, that the euro will have a significant stop, is the weekly pivot of 1.3241.
Therefore, we can sell below 1.34 with targets to support level 1.3241, the stop loss will be place 50 pips above the maximum of 1.3403. The momentum indicator is below a downtrend and is showing bearish signal for the next few days.
If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com
