Bullish Opportunity Upon Breaking Fibonacci Resistance

5 days agoThe current EUR/USD chart shows important reaction levels using Fibonacci levels, which paints a notable technical picture for traders interested in the pair.

The 0.618 Fibonacci level ($1.10758) is the key resistance level that the price needs to overcome to confirm the uptrend. This level has seen some market reactions, and if overcome, the price could potentially move towards $1.11540 and $1.11929.

The 0.5 Fibonacci level ($1.10620) is now an important support level. Stability above this level could be seen as a basis for further upside. This level could also be seen as an entry point for traders who are optimistic about the pair's upside potential.

Looking to the downside, the support at $1.10034 is the latest low and the level to watch if the downtrend resumes. A break below this level could indicate that the bears are in control and pose a serious challenge for the bulls to hold the price higher.

Recommended Strategy: Traders should consider buying if the price firmly breaks above $1.10758 with short-term targets at $1.11540 and $1.11929, while placing a stop-loss below the $1.10034 support to limit risk if the market does not move as expected.