- February 24, 2023
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair gave us the decline we wanted as described on our last analysis 10 days ago:
The price is now approaching Support Zone (1.04800 – 1.04500), which is also around the 0.382 Fibonacci retracement level. The Support Cluster is getting extremely strong considering that the 1W MA50 (red trend-line) is right below, which supported the price with an extremely strong rebound on January 06 2023 and the 1D MA100 (green trend-line), which was the Resistance level during 2022 Bear Market. On top of those, add the September 28 Higher Lows.
Our strategy is to buy when the 1D RSI gets oversold, which is recent years it has always delivered a rebound to the 1D MA50 (blue trend-line). The Target 1 range is within 1.06500 – 1.0700 depending on whether the price rebounds the next week or in two.
Beyond that, if we close a 1D candle above the 1D MA50, we will buy again and aim at the February Resistance of 1.10300 (Target 2). If not, we will short the Higher Lows break-out and buy inside Support Zone 2, where the 0.5 Fibonacci extension is.