Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EUR/USD Bears Want Test of Moving Average

Published 06/01/2023, 09:23 AM
Updated 07/09/2023, 06:31 AM

EURUSD-Daily Chart

  • The EURUSD tested the March 20th low yesterday and reversed up.
  • The channel down is tight, which increases the probability that the first reversal down will fail.
  • The market is developing more buying pressure, increasing the odds of a test of the moving average (blue line).
  • Bears were happy to sell below the moving average when the selling pressure was strong. However, most bears will be less interested in selling below the moving average if the selling pressure is strong.
  • The bulls know that the bears are becoming less interested in selling at this price level, so they will buy, betting that the market has to get closer to the moving average.
  • Since the channel down is tight, any test of the moving average is likely minor at best. This means the market will probably have to test down to this price level even if it reaches the moving average.
  • It is reasonable for bears to exit shorts here because of the risk of a buy vacuum test of the moving average.

Latest comments

🌹🙏
great analysis from a great trader
thank you sir for your help
thanks alot 🥰
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.