The price action is behaving as per the expectations of the Wyckoff Cycle method in the short term. The EURUSD consolidates in an Accumulation range, following the completion of the preceding Markdown.
The consolidation range spans between the major support at 1.18550 and the 23.6 per cent Fibonacci retracement level at 1.19181. If the price manages to break out above the latter decisively, it could then head towards the next psychological target. This is the 38.2 per cent Fibonacci at 1.19621.
Two crucial factors underscore this possibility. The price action is currently concentrated above the range's mid-point at 1.18900 and above the three key moving averages. Those include the 100-day MA (in blue), the 50-day MA (in green), and the 20-day MA (in red).
Conversely, a breakdown below the lower border of the range would imply the possibility for the continuation of the previous downtrend
The consolidation range spans between the major support at 1.18550 and the 23.6 per cent Fibonacci retracement level at 1.19181. If the price manages to break out above the latter decisively, it could then head towards the next psychological target. This is the 38.2 per cent Fibonacci at 1.19621.
Two crucial factors underscore this possibility. The price action is currently concentrated above the range's mid-point at 1.18900 and above the three key moving averages. Those include the 100-day MA (in blue), the 50-day MA (in green), and the 20-day MA (in red).
Conversely, a breakdown below the lower border of the range would imply the possibility for the continuation of the previous downtrend
