EURUSD Critical week. It is all about the 1W MA50.

Jun 21, 2021

Last week the price closed below the 1W MA50 (blue trend-line) for the first time since May 18, 2020. Even though EURUSD is still on Higher Lows since November 02, 2020, it remains under the bearish effect of the Lower Highs since the Jan 04, 2021 weekly top.

This 1W MA50 break brings comparisons with the May 07, 2018 weekly breaking. At that time, the pair broke below the 1W MA50 and never closed a 1W candle above it in almost 2 years. Once it did, it marked the bottom and the 2020 rally started.

In my opinion, even though the price remains on Higher Lows, it is more important to make a weekly closing above the 1W MA50 to restore the bullish sentiment. Otherwise, as long as it does not, the price action should continue to show weakness, first on the Red Symmetrical Zone and the 1W MA200 (orange trend-line) and if broken, towards the 4 year Higher Lows trend-line.




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