EURUSD: Navigating the Bear Market and Identifying Entry Points
Solid ECN – The European currency experienced a significant decline against the U.S. Dollar after failing to maintain its position above the Ichimoku cloud on March 21. The pair is currently trading around 1.081 and is nearing the 23.6% Fibonacci retracement level, coinciding with the 1.079 support level.
The Relative Strength Index (RSI) still has room to enter the oversold territory, suggesting that the decline may continue, potentially dipping below the 30 level as the market approaches the Fibonacci level.
From a technical standpoint, we are currently in a bear market. However, the 23.6% Fibonacci support level may provide a good entry point for bullish traders looking to capitalize on a potential pullback. The rebound is anticipated to start around the 1.079 level and extend to 1.083.
We recommend closely monitoring the EURUSD price action, examining candlestick patterns near the Fibonacci level mentioned above, and adjusting trading strategies accordingly.