A Missed Opportunity In EUR/USD
Skerdian Meta • 1 min read
EUR/USD has been trading in an uptrend since the beginning of the year. However, over the last several days the sellers have become more confident and this forex pair fell more than 100 pips lower.
There have been a few good selling opportunities during this time, but we have been concentrated on USD/CAD and AUD/USD, since the downtrend in these two forex pairs is much stronger than the one in EUR/USD.
In fact, right now we don’t even know if this is a reverse down or just another pullback before the next leg higher. The fundamental analysis points up for both currencies, so it will be the market which decides what direction EUR/USD will take.
That being said, there are short-term term trades in both directions, but the downside is more favourable.
The 50 SMA has turned into resistance now
A few hours ago there was a great selling opportunity. In the forex chart above, we see that the trend clearly points downward and the 50 SMA (yellow) was providing resistance on top.
The stochastic was heading down, RSI was heading down too and the price formed an upside down hammer, which also points down. Though we didn´t take that trade, at least our USD/CAD signal that we opened about an hour ago just closed in profit.
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