As we can see, there is a clear drop on EURMXN since June 29th. The price drops from 26.149 to 25.036. So how does this drop influence the future trend?
The most direct way is to build a Fibonacci retracement and wait for the retracement to meet these levels.
Here, the high trend line already meets the 0.786 fib level, which is a high retracement. As can be seen, the price forms a rising wedge pattern, and the upper trend line is just the 0.786 level fib.
So this 0.786 retracement line is very important here.
It gives pressure to the price and marks the power of the price. I would say, that’s it, the price may not break out this line here.
So, as I mark, let’s wait for a downward trend now.
This post does not provide Financial Advice for traders, its merely purpose is education, use all the information available from different Analysts and build your own strategy, trading is not for everyone, you should only trade with money you can afford to lose, past performance is not an indicator of future results.