Steady downtrend since May has resulted in a 60% loss against the USD, while the price went from $1.3, down to the recently formed low at $0.05. After hitting the low, NLG/USD went up and broke the downtrend trendline, along with the 50 Moving Average and the descending channel, all at the same time.
However, Gulden has rejected the 23.6% Fibonacci retracement level at $0.07 and went down to test 61.8% Fibs at $0.058. The Fibs support has also been rejected, and now it seems that NLG has stuck between those two levels.
At this stage the range trading might continue for days, but it is important to watch for the breakout, either above the resistance or below the support. Break above the resistance should send price up to 76.4% Fibs near $0.1 psychological resistance. While break below the support is likely to result in a double bottom formation near $0.05 or even the downtrend continuation.
However, Gulden has rejected the 23.6% Fibonacci retracement level at $0.07 and went down to test 61.8% Fibs at $0.058. The Fibs support has also been rejected, and now it seems that NLG has stuck between those two levels.
At this stage the range trading might continue for days, but it is important to watch for the breakout, either above the resistance or below the support. Break above the resistance should send price up to 76.4% Fibs near $0.1 psychological resistance. While break below the support is likely to result in a double bottom formation near $0.05 or even the downtrend continuation.
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