Pair EURUSD is moving in a descending channel, and we are now testing the previous low at the 1.08000 level. There are two possible scenarios:
The first scenario is a break below 1.08000, and the euro continues to fall to support at 1.06160.
The second scenario is the recovery of EURUSD to 61.8% Fibonacci level at 1.10470. We have the upper trend line as an additional resistance on that level.
Up there, we are waiting for the following confirmation, a break above the buy line or a negative consolidation for the sell option.
Fibonacci levels are of great help to us because we can monitor the strength of the pullback.
The pullback has stopped below the 61.8% level in the first Fibonacci setup. Also, we are looking for the same pullback on the chart if EURUSD finds support at the 1.08000 level.
The first scenario is a break below 1.08000, and the euro continues to fall to support at 1.06160.
The second scenario is the recovery of EURUSD to 61.8% Fibonacci level at 1.10470. We have the upper trend line as an additional resistance on that level.
Up there, we are waiting for the following confirmation, a break above the buy line or a negative consolidation for the sell option.
Fibonacci levels are of great help to us because we can monitor the strength of the pullback.
The pullback has stopped below the 61.8% level in the first Fibonacci setup. Also, we are looking for the same pullback on the chart if EURUSD finds support at the 1.08000 level.
