EURUSD entering multiyear Sell Zone, but might go to 1.160 first

EURUSD hit this week its 1month MA50 for the first time since October 2024. This is the first long term Sell Zone for the pair.

The 1month MA50 - MA100 Zone has formed the last two major peaks of the market (September 2024 and July 2023), so it is highly likely to see a top getting formed here in March-April.

Since however the 10year pattern is a Channel Down and the major bullish wave in 2017 was +21.67%, there is a possibility to see an overextension of the trend a little higher than the 1month MA100.

A max +21.67% rise would take the price a little over 1.1600, which would approach the 1month MA200 (10year Resistance).

This scenario is also supported by the 1month RSI, which during this 10 year span has topped twice at 665.00 and as you see makes a very distinct (nearly) Double Top formation.

In both cases, long term traders/ investors may target below parity prices at around 0.9000.

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