The currency pair Euro / USD has formed a S-H-S pattern. The neckline is on fib retracement 78.6% (1,15).
This neckline has been broken and this opens a correction to lower prices.
First support is at older fib (coming from 2002) 38.2% (1.14) - it is the actual price
Second support is ~1.11 (a swing trend line)
Third support is at 1.08 (a swing trend line with long history backing to 2015)
Fourth support is at older fib 23.6% (~1.03), which is also the 100% fib of downgoing retracement (dotted)
The Euro has several problems:
a) the crisis in Turkey
b) the bankproblems in Italy, Spain and Portugal
c) very low interest rates - absolutely and relatively to other currencies as the Dollar
d) an inflation rate rising above 2%
This neckline has been broken and this opens a correction to lower prices.
First support is at older fib (coming from 2002) 38.2% (1.14) - it is the actual price
Second support is ~1.11 (a swing trend line)
Third support is at 1.08 (a swing trend line with long history backing to 2015)
Fourth support is at older fib 23.6% (~1.03), which is also the 100% fib of downgoing retracement (dotted)
The Euro has several problems:
a) the crisis in Turkey
b) the bankproblems in Italy, Spain and Portugal
c) very low interest rates - absolutely and relatively to other currencies as the Dollar
d) an inflation rate rising above 2%