The EURUSD continues to form a symmetrical triangle, with people sitting on the sidelines to see where we will go next, as we continue to gravitate towards 38.2% level. The Fibb study works well as both the 38.2% and 50% retracements hold nicely generating quite a bit of activity at these levels so this is definitely worth bearing in mind moving forward.
So I'm not a huge user of the Gann Fan, but I thought this was an interesting chart to look at as it works pretty well here. Fan lines nicely work nicely but given the proximity to the final line, its unclear of what this is showing in an absolute form. I'd be erring towards bearish given the candles are sitting below the final line, but a strong rally towards 1.3500 could change this picture and flip it into a bullish phase.
Were testing the downtrend line again at the moment, which is looking quite strong as its been confirmed a number of times, but a break on the upside could shoot prices up to at least 1.3400 without too much effort, but a hold and we should fill the gap made from the weekend and test the 1.3200 level again. If I had to guess it'd be the later, and we will slip back into the 1.3200/1.2800 range that we've been accustomed to over the past couple if Quarters. The MACD is worth keeping an eye on for the next couple of trading sessions.
Focus definitely remains on the US Dollar strength, which has eased some what after Bernanke's dovish comments, so once again the Jobs number later in the week will be the main focal point.
Charts sourced from IG Index
So I'm not a huge user of the Gann Fan, but I thought this was an interesting chart to look at as it works pretty well here. Fan lines nicely work nicely but given the proximity to the final line, its unclear of what this is showing in an absolute form. I'd be erring towards bearish given the candles are sitting below the final line, but a strong rally towards 1.3500 could change this picture and flip it into a bullish phase.
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