The price action of the pair is currently probing the major support area (in green) following Friday's weaker-than-expected non-farm payrolls data. The report prompted a breakdown below the 38.2 per cent Fibonacci retracement level at 1.27062.
The dropdown, being mart of the second impulse leg (2-3) of a broader Elliott pattern, is likely to reach the 61.8 per cent Fibonacci at 1.25467, which is where a rebound could emerge. This is bolstered by the fact that the lower limit of the descending channel is currently converging with this final Fibonacci threshold.
Overall, the price action is likely to continue driving below the 61.8 per cent Fibonacci in the following weeks.
The dropdown, being mart of the second impulse leg (2-3) of a broader Elliott pattern, is likely to reach the 61.8 per cent Fibonacci at 1.25467, which is where a rebound could emerge. This is bolstered by the fact that the lower limit of the descending channel is currently converging with this final Fibonacci threshold.
Overall, the price action is likely to continue driving below the 61.8 per cent Fibonacci in the following weeks.
