EUR/USD Coils at 61.8% Fibonacci Ahead of Rate Repricing
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EUR/USD has stalled precisely at the 61.8% Fibonacci retracement of its most recent leg lower, a classic reversal zone that often precedes a decisive swing in either direction.
Candlestick structure on the daily chart shows a series of small-bodied dojis, signaling exhaustion rather than trend continuation. Volume has thinned alongside price, a pattern typically seen just before volatility expansion.
With the Fed's hike to 3.75%-4.0% now priced in, the pair's next move likely hinges on whether the 200-day moving average holds as dynamic support; a break below would validate a deeper corrective wave.