Analysis for October 7th, 2016
EUR USD, “Euro vs US Dollar”
After several rebounds from the retracement of 61.8%, the EUR/USD pair finally started falling. During the day, the local correction may continue, but later the market is expected to resume towards the downside fibo-levels at 1.1075.
At the H1 chart, the closest target of the current correction is the retracement of 38.2%. If the price rebounds from this level, the market will start a new decline. In addition to that, if the price breaks the downside target area, the market will continue falling much faster.
EUR GBP, “Euro vs Great Britain Pound”
The EUR/GBP pair reached its upside targets and may start a new descending correction. The closest target for bears is the retracement of 38.2%. If the price rebounds from this area, the market will start a new ascending movement.
As we can see at the H1 chart, the pair rebounded from its upside targets twice and now may start a new correction. If the price breaks the retracement of 38.2%, this correction may become deeper.
RoboForex Analytical Department