Green lines- Fibonacci retracements
EURUSD is trading around 1.0555 as price remains in a short-term bullish trend. Price has reached very close to the 38% Fibonacci retracement level where we find the first important medium-term resistance level. A pause to the rise is expected at this level. Even a pull back is justified, but we also expect the upward move to continue after a break. The RSI has not reached overbought levels. There is still more upside to be seen, but the chances for this happening in the near term are very low. On a weekly basis there is no sign of a reversal or a stop of the upward movement that started at the end of September. Traders need to be cautious when trading next to key Fibonacci levels.
