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Daily EURUSD Analysis: Finding Balance at 100% Fib Projection

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The EURUSD is finding balance after a big fall last week. In the last post I mentioned this level as a stopping point for this move lower. You can see in the image below that the pair is highly oversold on the daily charts RSI indicator. These two factors together are some serious support. The trend for the pair is definitely down and the move will almost certainly continue within a few days to a week. It took four days for the pair to clear the 75% extension line and the 100% extension line should at least post as much support.

The one exception to last week’s post is that I'll be moving my pullback targets further down. I'll now only be looking for pullbacks into the 1.3750 area. That is currently less than 50 points from current price action. I still like the 1.4000 area as a possible target but 1.3750 may be stiff Resistance in the coming days. If the pair does not close above 1.3700 today, then we may see a few more days of weakness between 1.3700/1.3600. So far the pair has moved above that level four times in the last ten hours, suggesting that the pressure may be building for a 1.3700 touch. There are suggestions in the market that there is still plenty more room to the down side for this pair.

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