Euro forms the Gartley harmonic pattern - Technical Analysis - 24-12-2015

EUR/USD fell in the intra-day levels, reaching thereafter the support of 1.0870, and bouncing off of it in its morning trading to form what appears to be a negative harmonic patter, which is the Gartley patter as shown in the attached chart. The pair is not trading within the fourth and final wave of that forming pattern with a positive support from the simple moving average for the last 50 hours period, attempting to finish the formation; and with the pair settling above the support of 1.0926, which represents the ratio 50% of Fibonacci retracement levels for a descending wave in the short term (from 1.1083 to 1.0869).

 

We therefore expect the pair to rise in its coming intra-day trading, targeting thereafter the resistance of 1.0956, which represents the ratio 76.4% of the same retracement level, finishing at it the formation of that harmonic patter, with a considerable chance of a renewed decline afterwards.