- EUR/USD is 0.55% lower on Tuesday as the tough start to the week continues.
- There is a big level near 1.15 where a Fib retracement, support level and a round number meet.
EUR/USD daily chart
EUR/USD looks like it may take a dive soon as the price printed below an important level. The consolidation low is marked on the chart in black and stands at 1.1694 and the price dipped just under the zone to hit a low of 1.1690.
This means a lower low and lower high wave have been created on the daily chart. Those traders that follow Dow theory know that this could spell trouble. It would be a better confirmation if the price closed below the level on the daily chart but we will have to wait and see if that is the case.
Looking at some of the other technical targets, the Fibonacci retracement and extension throw up a significant level at 1.1487. This is where the 38.2% and 261.8% meet. Also close by at the red line is a level which has been used as both support and resistance in the past.
The indicators are looking pretty bearish too. The Relative Strength Index is under 50 and still has some room before it hits the oversold area. The MACD histogram is in the red but the signal lines have not yet crossed the mid-point.
Overall, this looks like it could be a trend change. Once again a candle close below the aforementioned support zone at 1.1690 would go some way to confirm this. For now downside targets are in play unless there is another strong rejection later on.
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Additional levels
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