The price of EURUSD has already made two significant waves since the beginning of the year. Traders have paid more and more attention to this pair because these two big waves were very unusual. Due to these big waves, the standard deviation has been fluctuating. The standard deviation is now rising again, which is expected since the price has gone down sharply in the past three days.
During the past three days, the price has been down about 2.3%, which is a lot. The price has passed the 61.8% Fibonacci level; this level is a great support area. Today, the price has gone a little further, and has found some support. Does this mean the price will not go further down?
The price already broke the lower Bollinger Band, meaning it will likely face some pressure from the Bollinger Bands. However, the SAR is making a sharp downward trend, which is understandable since the momentum is still ongoing. To add to this, MACD also shows a bearish signal. And as we all know, the MACD is a lagging indicator.
Although there are bearish signals, the price meets support here, and it has already started to bounce back in the shorter timeframe. What will follow? We need to keep a close eye on EURUSD to find out.
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