- December 20, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair is close to forming a Golden Cross on the 1D time-frame which is the pattern where the 1D MA50 (blue trend-line) crosses above the 1D MA200 (orange trend-line). That is technically bullish but it doesn’t mean that the price can’t pull-back especially following the very aggressive rally it has been on since late September.
In fact, the last two 1D Golden Crosses had the price pull-back on overbought 1D RSI. Though the 1D MA50 wasn’t hit before the rally was well underway above the 1.5 Fibonacci, the price did test either the 1D MA200 or the 4H MA50 (thin grey trend-line) prior to the Golden Cross.
Again, this doesn’t change the long-term trend which has turned bullish, but the pull-back will represent a much needed technical retrace (also based on profit taking) to its fair buy level.