- February 26, 2023
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD pair has been on a strong monthly pull-back for the whole month of February. Technically the pull-back has been caused by an exact rejection on the 1W MA100 (green trend-line). The correction has already broken below the 0.236 Fibonacci retracement level.
Since 2009 and the U.S. Housing Crisis, similar corrections at or below the 1W MA100 have found Support on average within Fib 0.236 and 0.382. Only in August 2010 Fib 0.5 was approached. As a result we can claim that EURUSD is at or extremely close to a macro bottom.
On top of that, the MACD on the 1M (monthly) time-frame as formed a Bullish Cross. Since 2009 another 5 such patterns have been completed and all of them extended already existing rallies. The rises have printed a maximum of +25.80% and a minimum of +16.39%. The average +21.61% sets a target on EURUSD at 1.1600 and this is what we are aiming for by the end of the year.