EUR is overbought due to the American QE3 news, rising for more than 1000 pips with no decent retraction. We should stay alert to the 1.3200 resistance area, which could lead EUR to a retracement towards 1.3000 or the rising channel bordar that was broken.
its measured from the top down because it is a downtrend. After making a new low, it retraces back up and thats where the 0.618 fib level comes into play. then it bounces off of that and heads back down.......
rodrigosmarts
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yeah, that's why it's inverted! 100 should be on the top... think for a while and it'll make sense
4mm4
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but if the 100 were at the top, then there would be no fib targets for lower lows
rodrigosmarts
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100 is on top, because we are talking about retracement, a percentual of the previous deviation. If the price retraces all the movement back to the top, it has retraced 100%, so that's why 100 is on top..
.belive me :D