EURUSD Testing the 1D MA50. The Channel Up and the consolidation

EURUSD is has been trading within a Channel Up since October. Today it is the first time that the price made contact with the 1D MA50 (blue trend-line) since November 12, which obviously makes it a strong Support level. That also makes a Higher Low for the Channel Up. Technically that is a strong buy level towards the 1.2500 - 1.2600 Higher High Zone.

However, there is a certain sequence, which shows that if EURUSD closes one 1D candle below the MA50, it can enter a +1 month consolidation. As you see the August-September period was mostly a consolidation (green Rectangle) for EURUSD. Then the 1D MA50 failed to Support and entered a new lower consolidation (orange ellipse) for another +1 month that was the build up for the current Channel Up we're trading in. So keep an eye for a potential 1D candle closing below the 1D MA50 next week, in order to prepare for a few swing trades for the next 1month.



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