- August 8, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair has been trading within a Channel Down pattern since the February 10 High (rejection). Every Lower High has been formed on the 0.5 Fibonacci retracement level and we have been targeting this since our last medium-term buy exactly 1 month ago:
As you see, despite the initial rebound, the pair turned sideways in the past 3 weeks. However this still gives a good short-term opportunity for a buy, targeting the 0.5 Fib at 1.03697, which is now exactly where the 1D MA50 (blue trend-line) is. After that, a closing above the 1D MA50 isn’t enough to alter the long-term bearish trend, but a closing above the Channel Down would be a first sign. Still until that happens, you could use it as an SL and target the previous Low, and if you want the -0.382 extension for a new Lower Low.
Only a break above the 1D MA100 (green trend-line) would constitute a buy signal.