- April 26, 2021
- Posted by: Tradingshot Articles
- Category: Forex
EURUSD is currently testing the Lower Highs trend-line that started after the January 06 High. This is technically the most important Resistance on the long-term and the trend-line to beat if this bullish trend is to be extended.
The 4H MA50 (blue trend-line) is supporting but perhaps the most interesting development is on the 1D time-frame where there are currently more bullish indicators than ever in 2021. First the price is at the highest it’s been from the 1D MA50 (yellow trend-line) since January 06. Also, the 1D RSI and 1D MACD sequences are the strongest they’ve been in a year. Also see how the 4H MA50 has formed a Bullish Cross above the 1D MA50. Last time we’ve seen that was on November 12 2020, which formed the first Higher Low of the aggressive November-December 2020 rally.
If the price therefore breaks the Lower Highs trend-line, then the obvious target is the 1.2350 Resistance. If rejected then there is still Support to be found on the 1D MA50 before the next attempt. Anything below that should be bearish on the medium-term.