After looking at the EUR/USD in the longer term weekly charty esterday, let us now look more closely to the latest movements on the main FX instrument. The European session yesterday was not successful for buyers, but nothing major happened. The price fell below the short-term trendline (red), but this should not have a major impact on this pair. At the end of the European session, the price stopped above the 1.3775 level which played an important support role for the past two days in the previous week, and this is the place where Tuesday’s session starts. If this level is broken, it would give sellers an argument to start the downswing, aiming for the 23.6 Fibonacci level where the minimum from last Wednesday is. As we see on the chart, Fibonacci levels can play an important role in a possible retracement, as they are present on the same levels as the previous lows and highs of the day.
EUR/USD Hour Chart" title="EUR/USD Hour Chart" width="984" height="476">