More on Fibonacci
EURUSD is at an interesting place in the charts.  Price has been coming down since the November23 high near 1.5000. A nice retrace. In fact if you use the Fibonacci retrace tool you will see that price is now at the 38% retracement (at 1.4346) of the August17 low to the Nov23 move. What does this mean to me, the intraday trader? When I see a nice retracement like this I start to watch for price to “bounce” off these major retrace levels: 38%, 50%, or 61%. I had been only shorting the EURUSD pair the past week or so when I reallized that the major up move was over. ( When I saw that the daily 21ema turned to level, instead of up sloping.) So now that price has reached this important 38% retracement level, I will be watching the 21ema, which is now down sloping, to see if it levels out. I watch the 21ema on all time frames, it is a great indicator of current price trend. Currently all time frames show a down sloping 21ema, so my bias is still for selling this pair. But it is important to recognize these Fibonacci levels and possible price points where trend may change.Â