- May 17, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair has been trading within a Channel Down since the end of January 2022. Above its median it has been as sell opportunity while below it has been a buy. Every hit on the Lower Lows trend-line (bottom) of the Channel Down has seen roughly a +3.50% rise but that condition hasn’t yet been fulfilled on the last Lower Low.
As you see on this chart, a proper rebound has been missing since April 28. On Friday, the price made a new Lower Low and we are now on the 3rd straight green 1D candle. The 1D RSI is on Higher Lows though, indicating a Bullish Divergence. As a result, we may now get the +3.50% rebound and if we do it should reach at least 1.0700 on the medium-term by the end of May. At that time, it may make contact with the 1D MA50 (blue trend-line), which poses as the first Resistance.
In order to turn bullish long-term, the price needs to break above the April Resistance of 1.09415. Practically that would mean a break above the 1D MA100 (green trend-line) by that time, so the target would be the 1D MA200 (orange trend-line).
Until then, the trend remains bearish and keep aiming for Lower Lows.