The EURUSD has dropped heavily after surging up to 1.0950 zone. USD went strong in new 2016 and we can see a sell off in USD correlated pairs. Technically we have 2 POC's to watch for. POC (L3, trend line, 38.2 resistance) comes in 1.0855 zone while POC2 (H3, trend line, X cross) comes in 1.0905 zone and we can expect a rejection if the price gets within the zone.
However if the pair break 1.0785 with a strong momentum and H1/H4 close below it we could see 1.0720 where the pair might bounce. H4 time frame has been showing a mini uptrend after the pair broke through 1.0720 so fibs are placed accordingly. 61.8 and L5 mark the line of defense for bulls and potential bearish target.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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