EUR/USD - Back-testing the broken downtrend
EUR/USD has been trading in a downtrend since the 2008 peak at 1.6038 but this downtrend was broken in July 2020 near 1.1700. EUR/USD is currently retesting this broken downtrend, which is a classic buy-signal.
Notably, the Stochastic is crossing higher indicating more upside pressure in the weeks/months to come. The long-term cycles remain higher and favor us to take advantage of long-term buy-signals and that is what we are currently seeing with the retest of the downtrend.
To fine-tune the buy-signal, we recommend to loom at the shorter time-frame charts like the daily or 4-hourly charts to identify the ideal buying spot for the next long-term rally in EUR/USD
