EURUSD after breaking out of the rising wedge, EURUSD found support at the 50 days MA. 50 days MA is very important for institutional traders and they pretty often defend price on this level as everything below is dangerous for them to be long in it. It was overextended to the downside as it was far away from 8 days MA.
Volume did confirm price action as it was huge on down days which is a sign of possible reversal not just on the correction.
It is above 50 and 200 days MA but below 8 and 20 days MA which is neutral.
RSI did cool down and now is in neutral.
MACD is ticking lower but both MACD and signal line is above the zero line which is more bullish than bearish, but if the price continues to drop in 2-3 days it will be below the zero line for sure.
Overall: there is a high possibility for price to consolidate on this level and create a low base for the nation and prepare for the possible new leg down. If the price consolidates and stays on this level on a lower volume it will be a sign of preparation for the new leg down but if volume starts to go in it and the price starts to move up, high could be tested.
The main mover of the price will be Job claims from today, FED official speech tomorrow, and then 2 main events are on 14 FebGDP numbers and CPI. There is a high chance that the market will not decide its side until those data.
Volume did confirm price action as it was huge on down days which is a sign of possible reversal not just on the correction.
It is above 50 and 200 days MA but below 8 and 20 days MA which is neutral.
RSI did cool down and now is in neutral.
MACD is ticking lower but both MACD and signal line is above the zero line which is more bullish than bearish, but if the price continues to drop in 2-3 days it will be below the zero line for sure.
Overall: there is a high possibility for price to consolidate on this level and create a low base for the nation and prepare for the possible new leg down. If the price consolidates and stays on this level on a lower volume it will be a sign of preparation for the new leg down but if volume starts to go in it and the price starts to move up, high could be tested.
The main mover of the price will be Job claims from today, FED official speech tomorrow, and then 2 main events are on 14 FebGDP numbers and CPI. There is a high chance that the market will not decide its side until those data.
Consistency is the key of success....