EURUSD Has it already bottomed or there is one last leg left?

The EURUSD pair has so far been trading according to the pattern suggested last week:


The price got rejected on the 1D MA50 and, in a repeat of the October 28 2021 rejection, is pulling for a Lower Low. The natural target is the 1.06400 Support of the COVID March 2020 low. However, as per the 1D MA50 rejection pattern, the new Lower Low could be as low as the 2.5 Fibonacci extension (1.04173).

Today however, on the 4H time-frame, the RSI formed the third Higher Low since April 06. The same Higher Lows trend-line was seen on November 24 2021, which was the point where EURUSD made a (temporary) bottom and turned sideways for basically 2 months. The level that made the bearish trend turn neutral was when the price broke above the 4H MA50 (blue trend-line), which was the Resistance for 16 days.

As a result, a viable strategy is to hold on to your sells if you took our call last week, unless the price breaks the 4H MA50. So far it has been intact for 9 days. If it breaks, buy and target right below the 1.0 Fibonacci level at 1.1100.



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