A Range Bound Euro Presents Opportunity
The EUR/USD’s failure at 1.3800 has the pair range-bound between the psychological level and 1.3481-61.8% Fibo of 1.2444-1.5149. The upper bound is also the 50.0% extension of the decline and the potential support level could be serving as resistance as traders see a fair valuation below that level. The defined price action is creating a short opportunity with the lower bound as the target. Potential support at the 20-Day SMA at 1.3623 could slow gains. Considering that we are going with the broader trade, we are getting a solid risk reward ratio; however, I would still proceed with caution and limit risk until a break below the 61.8% Fibo.
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