Asset Watch
Tuesday, May 30, 2023
In contrast, the EUR/USD bounced off its 20-week MA several times in February and March 2023, which kept its recent bull market intact. However, a breakdown has occurred, as last week’s intraweek rally above the 20-week MA quickly reversed and the currency pair closed lower.
Right now, trendline support is the last line of defence. The upward-sloping grey line on the right side of the chart provided bullish relief in October 2022 and will need to hold for the currency pair to avoid a larger drawdown.
So, are the EUR/USD’s best days in the rear view, or will it recapture its 20-week MA?