Hello Bears Club from fxbeat, the Euro broke 2 very important support levels yesterday, and proved that a few anticipation of our members in group about bottom around 1.1159/60/80 was totally wrong. Breaking below 1.1159 was a warning sign, while breaking below 1.1096 was a confirmation that the price is going to move lower & lower. The price has reached a fresh 11-year low at 1.1026 earlier today, and it is expected to continue moving south probably in Cyprus meeting by ECB today.
The price is now expected to target 1.0998, and 1.0935, ahead of a long term Dow level at 1.0826. These levels may look a bit far now, but remember that we had a strong & very important bearish break yesterday (remember Del, Kevin and others- trust my numbers in calculation), when we had the double break of 1.1159 & 1.1096. taking the importance of this break into account suggests that the bears could very much pull the Euro lower to these levels on the short term, and even lower on the medium term, may be to test the long term 71.4% retracement at 1.0454. Breaking 1.1096 opened the door to all these possibilities!
On the other hand, first resistance is provided by the falling trend line from Tuesday’s high, which is currently running very close to the micro term Fibonacci 38.2% retracement at 1.1099. Any recovery attempts which fail to break above this level should not be taken seriously, on the contrary, they could provide shorting opportunities. However, if the price can recover past 1.1099, it will be expected to start rising higher, targeting other micro term retracements at 1.1122, 1.1144 & 1.1162. The last 2 levels look hard to break, but if the Euro can do it & break above 1.1162, we could be on the way towards 1.1245. Happy trading guys.. sorry I did not provide any chart today because too busy and also for managed account I will discuss and finalized with Diego this coming Thursday so we can start from next week or mid March - this month)
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