Sept 15, 2008 – Fibonacci

Looking at Fibonacci levels on the intraday 15-minute chart, we could see that the currency pair is highly conforming to the support and resistance levels.

The big dollar rally is likely to have temporarily ended at the low of 1.3883 last Thursday when the true possibility of a Lehman fallout became more evident.  I expect the bounce to continue for several sessions as doubts will surge over these liquidity problems extending to other firms.  This bounce could end if crude oil continues to fall but I expect crude to stabilize sooner rather than later.  Looking at intraday trading opportunities, the euro/dollar found support at the 61.8% retracement level to the latest dollar-bullish movement.  It is currently consolidating at the 50% level, from which I expect it to head higher in the short-term.  I would open a long position at the current 1.4188 with a limit order at 1.4240 and a stop order at 1.4110.

Intraday trading opportunitiy - Fibonacci retracements