Clearly the frantic pace of the euro slide has moderated in recent sessions. Assuming the market is signaling a retracement is at hand, how far can we retrace?
Let’s look at a few Fibo retracements. The 23.6% retracement of the 1.4381/1.2964 decline comes in at the 1.3275 level. The 38.2% retracement of the same slide lies at 1.3467.
Along the way, we have several moving averages which are near to one another, increasing their importance. The 10 and 100 day averages are at 1.3302 and 1.3324 respectively.
The downtrend drawn off the 1.4281 top comes in at 1.3439 on the hourly charts.
Using all of these indicators, I’d suspect the 1.3275/1.3325 area will contain rebounds near-term.
