EURUSD has been trading within a Channel Down since the January 06, 2021 Top. However since the March 31 low, it has posted an impressive rise, which despite still being contained within the Channel Down, it has printed the highest RSI value since December 04 as the title suggests.
This could be due to the bounce on the 1W MA50 as I suggested last week on the idea shown below:
The 1.1850 target on my previous short-term idea has been hit and now it remains to be seen what this very strong RSI mean:
Can it illustrate a change of momentum and shift of the long-term sentiment back to bullish? The 1W MA50 bounce appears to be in line with that. For a better understanding, I have applied the Fibonacci extension levels on the Channel Down while also plotting on the chart apart from the 4H MA50 (dark blue) / MA200 (orange), the MA50 (light blue) and MA200 (red) on the 1D time-frame as well.
The price has recovered the 1D MA200, an important long-term level that was previously a Support. If it closes now above the 4H MA200, I don't think it will stop on the 1D MA50 and will go for a re-test of the 1.382 Fibonacci extension as it did on February 25. Then we will re-evaluate with a new post. All that, assuming the 4H MA50 holds as a short-term Support. If not then it is up to the 1W MA50 to hold on the weekly time-frame as it did last week, breaking of which should take EURUSD to the -0.382 Fib extension.
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