Forex, video, latest June 21, 2021 8:01 pm
Pair corrects higher also shows signs of more balanced market
a EURUSD trended lower last week. inside a process, a pair reacted like a trending market.
a price stepped lower also had modest corrective moves. youre can see that more clearly on a 5- minute chart.
I like to measure trend “legs” also measure corrections of those legs. If a price stays below a 38.2%-50% of a legs lower, a sellers remain inside control also a trend is intact.
Also, a 100/200 bar MA (blue also green lines) are inside play as well on that chart. It takes a move return above those MAs (on a downward trend) to give a buyers some “like”.
Stay below a MAs – or fail on a break above especially when a price cannot get above a 50% – keeps a sellers more inside control.
Last week, a price did move above a 100/200 bar MAs but could not extend above a 50%. a sellers took return over when a price moved return below a MA lines on Friday.
Today, a price has corrected higher also inside a process a pair has moved above a 100/200 bar MAs also a 50%.
SO a trend momentum has slowed. There is more of a balanced market.
Does it mean us are moving higher? Maybe. There is room for more upside probing especially if a now rising 100/200 bar MAs can hold support at 1.1881 also 1.1872 respectively (also moving higher). However, a market doesn’t just forget what happened last week.
Looking at a hourly chart below, a 61.8% of a move up from a March 31 low cuts across at 1.19183. That would become an upside target that would give a dip buyers “more like”. inside addition, a 1.19255 level (near swing highs also swing lows from Thursday also Friday), would become a another upside hurdle for a buyers. Get above those levels, also a correction could see more upside probing.
Conversely, move return below a rising 100/200 bar MAs on a 5-minute chart, also a buyers don’t feel that much like. a bias tilts return inside a favor of a sellers.
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