September 16, 2009
EUR/USD Rejects 61.8% Fibonacci Level (1.4622)
At the time of writing the EUR/USD currently stands at 1.4701 and just keeps on going higher. The upward trend is certainly still in place because the Supertrend indicator is still green, ie bullish, on both the daily and weekly charts, and has been since May. Furthermore you can see that the EMA (200) is rising on both of these time frames.
So how much further can the EUR/USD go?
Well it's interesting to note that if you plot some fibonacci retracement levels on your charts based on the high point of 1.6038 and the low point of 1.2330, you can see that the price has broken through all the major resistance points, ie 23.6%, 38.2% and 50%.
Plus it has now broken through the 61.8% resistance level (1.4622), which I consider to be the most important one because in a lot of cases you will find that this acts as a major resistance level. So the fact that the price has gone straight through this level suggests that there is now plenty of upside left in this move.
Of course fibonacci analysis can never be 100% reliable but I certainly wouldn't bet against a move up towards the 1.50 level.