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Euro Hovering Eerily Over Major 50% Retracement

|Includes: iPath EUR/USD Exchange Rate ETN (ERO)
Like Frodo and Sam at the hellish gates of Mordor, EUR/USD is hovering eerily over its major 50% retracement of 1.2135-2 (appx. with variation due to bids). Key levels like this don’t come along too often, and if you’re not aware of it already, it is important that you do.

Because of the massive range, there’s going to be a slight variation of pips, but Reuters is publishing it at 1.2135 (0.8225 all time low - 1.6038 all time high). Regardless of the outcome, the level is still there and its not going away and will be likely used in the short or long term provided any pass on or through it. Look for stacking support and resistance patterns above or below the level on smaller timeframes above and below the level.

Key buyers have prevented further slide above the level around the current low of 1.2142, but given the race of news events coming out lately further slide is being headlined on many fronts.

Even if they seem to be ignored the first time, levels like this are not forgotten about in either long or short scenarios.




Disclosure: No Position