EUR/USD has had a bearish week. The European economy is in a tough place, economic growth is stagnant, the new ECB President Lagarde is urging European countries, especially with budget surplus, to increase spending to help the economy rebound. The UK general election and Brexit is coming up fast, and opinion polls suggest Conservative victory with parliament seat majority which heightens the chances of Brexit by January 31st.
On the Daily TF, we see that the price again met our first support target at 61.8% Fibo, the price dropped to 1.09935 and then returned to 1.10 area.
Parabolic SAR is pointing down, MACD bearish histogram is increasing. If we drop down to the 1H TF, we see that the price is re-testing 1.10 as a level of resistance after the breakthrough.
Support: Once the price breaks the key level of support at the 61.8% Fibo level, down, our next support will be in the area of 1.09717, further down 1.09434.
Resistance: Negative trade war headlines may bring the pair up to the 50% Fibo level around 1.10293, followed by 38.2% Fibo 1.10647 and then 1.11.
On the Daily TF, we see that the price again met our first support target at 61.8% Fibo, the price dropped to 1.09935 and then returned to 1.10 area.
Parabolic SAR is pointing down, MACD bearish histogram is increasing. If we drop down to the 1H TF, we see that the price is re-testing 1.10 as a level of resistance after the breakthrough.
Support: Once the price breaks the key level of support at the 61.8% Fibo level, down, our next support will be in the area of 1.09717, further down 1.09434.
Resistance: Negative trade war headlines may bring the pair up to the 50% Fibo level around 1.10293, followed by 38.2% Fibo 1.10647 and then 1.11.