Euro tries to recover what it can. - Technical Analysis - 04-01-2016

EUR/USD began the year with gains in its intra-day trading, settling thereafter above the support of 1.0863, which represents the ratio 23.6% of Fibonacci retracement levels for a descending level in the short term (from 1.1051 to 1.08030. The pair then stopped at the resistance of 1.0900, trying to tackle it. This level represents the ratio 38.2%; along with an influx of positive signals from relative power indicators live the Stochastic indicator as shown below the attached chart.

 

Therefore we expect the pair to gain further ground, as long as it confirms breaching the resistance of 1.0900, opening the door thereafter for more gains, to target the resistance of 1.0961, which represents the ratio 61.8% of the same retracement levels mentioned earlier.