The market today has been relatively quiet. We have opened five forex signals so far and all of them are still live at the moment.
We opened a sell forex signal a while ago, so let’s have a look at the chart setup to see why we decided to go short on this forex pair.
First off, this pair has been in a downtrend for the last couple of days, which is part of the bigger downtrend which started last week.
This morning, EUR/USD has managed to form a retrace higher which to me looks like it’s over right now. The hourly chart is overbought, with stochastic near the top of the range.
The two moving averages are providing solid resistance at the 1.1750-60 level.
The price has reached the 50 (yellow) and 100 (green) SMAs, which are providing solid resistance. We can find the 20 SMA on the H4 chart at the same level as the 50 and 100 SMAs, which adds extra strength to the 1.1750-60 level.
This makes four technical indicators pointing down, the trend, the 50 and 100 SMAs on the H1 chart and the 20 SMA on the H4 chart. It’s for these reasons that we took the trade in EUR/USD, so let’s hope the downtrend resumes again.