EUR/USD -25/5/2023-
• The pair lost more than 300 pips in 2 trading weeks
• Short and medium term trends are bearish for the following reasons:
1- Prices broke below a long term ascending trend line and is trading below it for the second day
2- Prices are trading below 20,50 and 100 Moving Average
3- Prices broke below the 61.8% Fibonacci level of the latest advance
4- Prices are trading inside a parallel downward channel
• Long term trend is neutral to bullish as we got some mixed signals for the following reasons:
1- Prices are still trading above the 200 Moving Average, a long term bullish signal
2- 1.07 support level is holding for now and this might give the bulls a double bottom signal entry if the pair gathers momentum again
All in all, prices are expected to go sideways soon as the downward channel is tight and we are approaching oversold conditions and strong support.
Bulls are aiming to get a double bottom entry at 1.0710
Bears target a break below 1.0710 to get another leg down to 1.0510
Traders, if you like this idea please comment and like ✅
Here to answer all your questions,
Good luck
• Short and medium term trends are bearish for the following reasons:
1- Prices broke below a long term ascending trend line and is trading below it for the second day
2- Prices are trading below 20,50 and 100 Moving Average
3- Prices broke below the 61.8% Fibonacci level of the latest advance
4- Prices are trading inside a parallel downward channel
• Long term trend is neutral to bullish as we got some mixed signals for the following reasons:
1- Prices are still trading above the 200 Moving Average, a long term bullish signal
2- 1.07 support level is holding for now and this might give the bulls a double bottom signal entry if the pair gathers momentum again
All in all, prices are expected to go sideways soon as the downward channel is tight and we are approaching oversold conditions and strong support.
Bulls are aiming to get a double bottom entry at 1.0710
Bears target a break below 1.0710 to get another leg down to 1.0510
Traders, if you like this idea please comment and like ✅
Here to answer all your questions,
Good luck
Ramzi Abou Abdallah, CFTe, CMT
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