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EURUSD is testing 72.8% Fibonacci level

Tuesday, March 19, 2019 3:00 PM GMT

Today, European Monetary Union ZEW Survey Economic Sentiment (Mar) verified at -2.5, unrevised from the expectations for -18.7 (Previous: -16.6). On the other side, US Factory Orders increased to 0.3% from 0.1% in the previous month.

Reviewing the daily technical aspect, EURUSD is in long-term bearish momentum since the beginning of the year. Currently, the pair is testing the 72.8% Fibonacci resistance level, which comes in confluence with the Daily (R1). Going to more technicals, RSI is moving within the 50 to 60 zone, which is supposed to act as a retracement zone during a downtrend, while Stochastics is breaking out of the overbought zone.


Heading to the H4 timeframe, both RSI and Stochastics are currently forming bearish divergences.


Overall, the setup indicates a potential reversal towards 61.8% Fibonacci level, offering a potential bearish opportunity to the market.

On the other hand, if price breaks out above the 72.8% Fibonacci level, then Buyers may push the pair towards the trendline (T1).

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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