EURUSD Will it find Support on the 1D MA50?

[skrimon]

The EURUSD pair has suffered a more than -2% decline in the past two days following the NFP report on Friday. The price broke below the 4H MA50 (blue trend-line) and is marginally above the 4H MA200 ( orange trend-line). This level hasn't been reached in a month (January 06). The majojor Support of this long-term uptrend however is the 1D MA50 (yellow trend-line), which has been untouched since November 04 2022.

The long-term pattern is a Channel Up and the Fibonacci retracement levels help at identifying Support/ Resistance levels. Our strategy is to sell below the 4H MA200 and target the 1D MA50 - Support Zone 1 Cluster on the short-term. Sell extension only if the price breaks below the Channel Up and target Support Zone 2.

As long as the 4H MA200 holds, a short-term rebound may be materialized towards the 4H MA50. However we are willing to buy only above the 0.5 Fibonacci retracement level, targeting the 0.786 Fibonacci.

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[Polakandil]

EURUSD is the most traded pair in forex market, there are some reason why many traders like to trade on EURUSD because good average movement daily, and low spread compared to another pair, in FXOpen spread from 0.0 pips, even with TickTrader terminal platform possible get negative spread on this pair.