EURUSD 1st hit on the 1D MA50 after a month. Rejection or not?

The EURUSD pair hit today the 1D MA50 (blue trend-line) for the first time in almost 1 month (since January 24) and immediately retraced. Will this level provide a full technical rejection? Well at first glance, this is also the top (Lower Highs trend-line) of the nearly 2-month Channel Down. In addition, last time the 1D MA50 was tested (Jan 24) or nearly tested (February 02), it was emphatically rejected.

A similar development took place on the pair's previous long-term correction (July 18 - October 03 2023). After it broke below the 1D MA50, the first counter trend rally was rejected just below it (August 30 2023). That was the start of the Phase 2 of that correction leg, which extended to the 1.136, 1.236, 1.6 and 1.618 Fibonacci extension levels in succession. As long as the 1D candle keeps closing below the 1D MA50, we will remain bearish, targeting Support 2 at 1.06550.


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