As I wrote in the weekly review of the markets last Thursday, the market realizing the proportions of AB = CD arrived in the vicinity of levels of 161.8% external measuring of last bullish impulse and 261.8% external measure last week’s downward correction, where there was a strong supply-side response. If the decline will continue in the near future we can expect a retest of defeated last week resistance (now support) coinciding with the measuring 38.2% Fibonacci correction.
As a result of the morning growth market reached vicinity of the local resistance 1.3165, where there was a strong supply-side response. Declines caused by rejection of this level beat the upward trend line and we are now in the area of local resistance coinciding precisely with the measuring 70.7% Fibonacci correction. Overcoming this level could open way for further declines, although it is possible that in the near future will be an upward correction and re-test of trend line from the bottom (as resistance).
As a result of ongoing from Friday declines market reached today vicinity of local support coinciding with the rising trend line, which originally appeared a bullish response. Currently, the market is again trying to overcome the said zone and only if this level is permanently defeated in the near future we expect a continuing decline even in the vicinity of the level of 113.10
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