EUR/USD: placing sell orders (June 16)
By Felipe Erazo
On the H1 chart, the EUR/USD made a retracement to the 61.8 Fibo Level, so this pair had a significant drop from that level to the support level of $1.3533, which coincides with the 23.6 Fibo Level. Now, it is very likely that EUR/USD will make a breakout at that support level, because this pair has not found a clear bottom for current bearish trend.
If the pair manages to make a breakout at that level, it would be expected to fall to the support level of 1.3512 and the bearish trend could continue dominating in the current road of the EUR/USD. However, if the EUR/USD manages to make a breakout in the 38.2 Fibo Level ($1.3546), it’s expected to rise to the level of $1.3556 (50.0 Fibo Level). An important point to note is that the 50.0 Fibo Level matches a bearish trend line, which could cause strong resistance on EURUSD.
Trading recommendations: Place sell orders if the EUR/USD makes a pullback at the 50.0 Fibo Level ($1.3556), with take profit at $1.3533 (23.6 Fibo Level). Alternatively, if this pair makes a breakout at the support level of $1.3533, place sell orders with take profit at $1.3512 (Fibonacci retracement’s starting level).
Chart. H1 EUR/USD