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EUR/USD consolidating after fall into Fibonacci support
EUR/USD has been trading largely sideways, following a drop into the 76.4% retracement of the $1.1554-$1.2556 rally. The wider context shows that there is the potential for this market to continue this period of weakness and get out of a long-term uptrend by breaking below $1.1554.
However until that happens, we also have an 18-month uptrend to contend with, and this 76.4% level is going to be key in seeing whether we are likely to hold up or continue the short-term decline. A break below $1.1790 would therefore point towards a heightened chance that we are seeing a long-term bearish reversal, while a rally from here would signal a potential recovery in line with the uptrend in play since late 2016.
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