EUR/USD Likely to Test Moving Average Soon
Al Brooks | Jan 30, 2023 09:24AM ET
- The EUR/USD has been in a bull channel for over two months. The channel up is tight, which will limit the first reversal down.
- The market has been away from the moving average for some time. This will increase the odds of a pullback to the moving average soon.
- While the channel up may continue, the market will likely transition into a trading range soon and not continue much higher.
- The weekly chart has been in a tight bear channel since mid-2021, and the rally from October 2022 was the first trendline break of the bear channel.
- Bulls will likely need a higher low major trend reversal on the weekly chart, which means the market will probably need to pull back to around the 1.05 price level before bulls view it as a credible higher low major trend reversal.
- Overall, this means that the daily chart will likely be sideways for several months.
Get The News You Want
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.