Fibonacci and the fall of the Dollar

The dollar has not done so well of late dipping down near a three-month low against what Reuters calls a basket of currencies yesterday on the perception that the U.S. growth outlook is deteriorating, forcing the Federal Reserve to keep interest rates low.

Euro firm after breaking above Fibonacci retracement screams one bullet point. Now I must admit that I do not know what Fibonacci sequences have to do with the markets (yet) but I am familure with Fibonacci numbers all the same. However my understanding of Fibonacci number sequences is GCSE level at best.

The numbers have important implications for computing (my field of experience).

That said I have been able to find out that stock (and one assumes currency) has a tendency to spend a short period of time going in the "other" direction before resuming it's rise (or fall). This is called a retrace and commonly has some sort of Fibonacci pattern to it. In other words these retraces are dead common and follow a mathematical pattern on average.

If you wish to tell me more please feel free.