After a couple of weeks of consecutive downward drop-downs, we might finally observe an awaited reversion pattern in the EURUSD fx rate. On the present chart I try to draw the following predicting properties:
1. Multi-Time Period Charts, Time Frame: Weekly, Calculation: Trading range - This is a very nice and simple way to see the overall tendency observed during past weeks' market development.
2. Fibonacci retracement for past week (T-1) - Where 0 level is last week's range bottom fx level (trading range); - Where 1 level is last week's range top fx level (trading range); - Where we project Fibonnaci retracement levels respectively for the following ranges: (0<fx<1), (fx>1), and (fx<0)
NB! Since my personal outlook is for an upward correction in the fx rate for EURUSD, I expect that Fibonacci levels for the fx rate range (0<fx<1) would be tested until the end of that week, and possibly we may go above Fibonnaci fx level (fx>1). For possible falter-check-downs of the fx rate we have considered Fibonnaci fx rate levels for the range (fx<0)
3. For better analytical back-up, considering past week's (T-2), we clone the Fibonnaci retracement considered for past week (T-1). We adjust that Fibonacci retracement at the bottom fx level (trading range) for past week (T-2), and consider the projected extensions of its retracement levels.