On the other hand, if the DFMGI breaks below the 88.6 per cent retracement
level with momentum, it heads towards the 2016 low and has a good chance of breaking below it eventually.
Note that the market is coming off 61.8% retracement
and completed 2 sets of ABC corrections 6 perhaps a double 3 in Elliott wave terminology.
Last week's price behaviour has created a bullish weekly candle pattern and it occurred around support of the 61.8 per cent Fibonacci retracement
price level of 6.02.
Support at 3.15 is the 21% Fibo retracement
from 2.79 to 3.241.
Certainly, in the short-term a retracement
higher may be seen, in which case watch for resistance around 3,489, followed by the 3,511 price area.
Only a daily close below this level would suggest top is possibly formed and risk minor correction to 1.2915 (38.2% Fibo retracement
of 1.2503-1.3169) but the Tenkan-Sen now at 1.2835 and previous support at 1.2755 should hold, and bring on another rise later to the upside targets.
This level intersects potential trendline resistance on the same day that the EURUSD resistance line intersects its 78.6% retracement
(end of September).
of the Nov-Dec rally at 97.157 provides support.
The 50 per cent retracement
level (3,505.08) of the prior downtrend off the October peak was also reached.
The 50% to 61.8% retracement
zone is 1.4172-1.4212.
is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century.
That's a roughly 10-point bounce in two sessions from Nov-Dec lows and puts October 28.84 highs within reach, while 20.0 remains the 50% retracement