Bloomberg euro technical chart indicates signs of peaking, and even raising the risk of a correction versus the dollar after climbed to a 30-month high Wednesday. That may seem hard to fathom after traders said the Federal Reserve policy meeting left them with a dovish outlook, but some popular market gauges suggest taking a closer look.
Elliott Wave and Fibonacci analysis suggest that the euro may be nearing a top. The Elliott Wave study is close to completing the fifth wave of a price appreciation sequence that began Jan. 3. In theory, the euro should subsequently enter the first phase of a three-wave drop.
A five-year snapshot of the euro shows Fibonacci resistance at $1.1736, the 38.2 percent retracement from this year’s low to the May 2014 high of $1.3993. Looking further back, $1.1685 is the 23.6 % retracement level off the all-time high of $1.6038.