- March 7, 2023
- Posted by: Tradingshot Articles
- Category: Forex
The EURUSD has suffered a strong blow to the recovery it staged last week following Powell’s testimony on a potentially higher pace of interest rate hikes. This analysis is an update to our February 24 thesis, which successfully caught the first rebound:
We now added the Fibonacci Channel levels and see that the price is already below the 0.236 Channel Fib. Within this Channel Up, every time a 1D candle closed below the 0.236 Fib (October 31, October 19, October 07), the price reached (or dipped very close to) the bottom of the Channel. This time the bottom of the Channel is around Support Zone 1 and horizontal Fibonacci retracement level 0.382. However, the 1D MA100 (green trend-line) is in between and has been intact since November 10 2022. The 1D RSI hasn’t yet hit the (30.00) oversold barrier, but the 1D MACD has already made a Bullish Cross, which is a rise indicator.
We are willing to take the risk and enter a buy now before hitting the 1D MA100 and Target (1) again the 0.236 horizontal Fib T 1.06800. If a 1D candle closes above the 1D MA50 (blue trend-line), we will resume buying, targeting 1.10300.