- November 4, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair made yesterday a perfect Higher Low on the bottom of the Channel Up pattern that started on the September 28 2022 Low. The 4H RSI made an instant bounce after breaking below the 30.000 oversold territory but the biggest Buy Confirmation comes from the 4H MACD. As you see it is currently forming a Bullish Cross, which since the September 28 bottom, has been the ultimate buy entry signal.
Having broken above its 2022 Channel Down (dashed lines), we may be in the process of seeing a gradual shift on EURUSD towards a bullish trend long-term. Still premature as the 1D MA100 (green trend-line) rejected the uptrend on the last October 26 Higher High, and also we need to see the 1D MA200 (red trend-line) breaking.
But on the short-term, once the price closes above the 4H MA200 (orange trend-line) we will target the 4H MA50 and then the 1D MA200, which as mentioned is the current Resistance. A break above it as well, would be a new short-term buy targeting the top (Higher Highs trend-line) of the Channel Up. A 1D closing above it, would target the 1D MA200.
On the other hand, this bullish approach will be invalidated if the price breaks below the 0.97005 Support (1). In that case, Support (2) at 0.96300 and Support (3) at 0.95350 will be targeted.