I recently set up 2 sets of fibonacci retracements on my EUR/USD 1hr chart which starts, for me, on 2/16. My original retracement begins at the high on 2/17 (1.3788) down to the low low on 2/18 (around 1.3443). And my second hitting the same low but starting on the high on 2/18 at 1.3650 about. 2 of my percentage retracements overlap each other almost seamlesslly, does this have any bearing on the prominence of these levels of support/resistance?
That’s what we called fib. convergence, some traders use these as entry points after having an overall bias in such direction.
This 1.365 looks like a serious resistance point for the Euro, JohnnyBsmart really stuck it to me that the dollar is in for a very, while unwarranted, fun downhill ride. Can anyone explain the why EUR/USD and USD/CHF act inversely of each other? I feel like if Im going to make money off of a currency I should also make money of something that runs, seemingly, exactly the opposite direction hahaha, btw Im Nick everyone, newly turned FOREX FREAK, University Student in Omaha.
When the USD/CHF acts inversly to the EUR/USD it is when the market is reacting to the USD.
USD/CHF is the price dollars will fetch if converted to CHF
EUR/USD is the price euros will fetch if converted to USD
one is converting a different currancy to dollars the other converting a currency from dollars.
If the pairs were both converting to dollars or from dollars they would both appear to go the same way as long as the driving force is with the dollar.