EUR/USD – Rejected by Resistance
October 31, 2008 12:56:05
(Please click on the accompanying chart to enlarge. Chart is courtesy of FX Solutions.)
As of early Friday morning (10/31/2008) in New York, as shown on the accompanying EUR/USD daily chart, the upside correction on this key pair has been rejected at the key resistance imposed by a major 38.2% Fibonacci retracement level that coincides with strong prior support/resistance around the 1.3250-1.3300 region. After having been rejected at this level, price has fallen back severely once again to target strong support around the two-and-a-half year lows in the pair (1.2330 region), which were just hit earlier in the week. At this juncture, we should potentially be seeing a consolidation between the long-term lows and the aforementioned 38.2% Fibonacci level, possibly with some further near-term downside action within this consolidation.
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