- ETH/EUR has breached strong support at 382 levels which is converged trendline and 78.6% Fib retrace of 168 to 1168 rally.
- The pair is trading 6.22% lower on the day, at around 366 levels, bias still bearish.
- Price action rages in 'Symmetric Triangle' pattern and decisive breach at 'Triangle Base' could see further downside.
- Technical indicators support downside. Momentum studies are highly bearish. We see scope for further weakness.
- Next major support lies at 282 levels (88.6% Fib retrace of 168 to 1168 rally).
- On the flipside, breakout above 5-DMA at 107 could see test of 20-DMA at 494.
Support levels - 334 (Dec 8 low), 300, 282 (88.6% Fib retrace of 168 to 1168 rally)
Resistance levels - 382 (converged trendline and 78.6% Fib retrace of 168 to 1168 rally), 400, 407 (5-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-ETH-EUR-capped-at-5-DMA-at-425-on-track-to-test-786-Fib-382-stay-short-1220994) has hit TP1/2.
Recommendation: Book partial profits at lows, trail SL to 410, hold for further weakness.
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