EUR support and resistance still valid
Whether last night’s news was really a surprise is questionable but we find that the market or more importantly the charts contain a lot more predictive value.
A low-high (March) fib measurement of the EUR on the daily chart will show that yesterday’s trading low for the was really a 23.6% retracement support. This was also confluence of an equidistant channel that could be drawn using points which were already available over the past few days.
A 170 pip rally brought the EUR to the top of the channel and touching the resistance nicely. It really isn’t a surprise. Its a bet of 30 pip stop versus a 170 pip target.
What’s more, until the channel is violated conclusively, it is still valid.
