- October 31, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair got emphatically rejected on its 1D MA100 (green trend-line) last Wednesday and as we discussed in our previous analysis, that was an instant short-term sell. Now the price is testing the 4H MA50 (blue trend-line), which along with the 4H MA200 (orange trend-line) form the short-term Support Zone.
The rejection, confirmed the emergence of two Channel Up patterns, (A) and (B), which broke above the Channel Down that was dictating the trend since the February 10 High. The shift in the long-term trend is evident on the 1D RSI which is supported on Higher Lows since the September 28 bottom. Even though Channel Up (A) has a clear Buy Zone (green), perhaps the best Buy confirmation is given by the 4H MACD, which since the bottom has given 3 accurate signals when it formed a Bullish Cross.
If it rebounds successfully, the short-term target will be the 1D MA100 and only if it breaks, then the top (Higher Highs trend-line) of the Channel Up. Ultimate long-term target is the 1D MA200 (red trend-line). A break below the Channel Up, can target Support 1 and Support 2 in succession.