EURUSD hit the 1W MA200, first time since July 2020!

EURUSD has been trading within a Channel Down ever since the January 06 2021 market Top, so practically since the start of 2021. Today's price action has give 2 important benchmarks:

a) it hit the bottom (Lower Lows trend-line) of the Channel Down for the first time since March 31 2021 but more importantly
b) it hit the 1W MA200 (red trend-line) for the first time since July 14 2020!!


This chart right above maybe even more illustrative as it is on the 1W time-frame and with that I want to show that the last time that EURUSD tested the 1W MA200 (orange trend-line on that chart) as a Support coming on a downtrend, was in August 2018. Straight after it initiated a +4.50% rebound towards the 1W MA50 before resuming the downtrend in September.

It would be best however to take one step at a time and look to trade the pair within the Channel Down. There are three separate levels of Resistance: the 1D MA50, the 1.19100 level (which is a Double Top = red arrows) and the 1D MA200. The previous rebound leg towards the Lower Highs (top) trend-line of the Channel Down marginally exceeded the 0.786 Fibonacci retracement level. If today is the bottom, the the 0.786 Fib is at 1.21182. Buying for the long-term and setting a 1.21000 target is a solid R/R trade.


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