The Euro Spikes Higher, but This Moving Average Is Doing Its Job
Skerdian Meta • 1 min read
The Euro has been sliding lower this morning after opening with a gap lower last night. But, in the last few hours, the Euro found some bids and in the last 30 minutes, we saw a sudden spike. I can’t find anything about it, so it’s just market sentiment as we explained in the previous forex update.
The 100 SMA is providing resistance now.
That spike took EUR/USD around 30 pips higher as you can see from the H4 chart above. The 100 SMA (green) is standing in the way, and it looks like it has formed a fence around the 1.1660-70 level. That level is a long-term support and resistance area, so hopefully, it will provide solid resistance again today.
Also, the 100 SMA itself should be a strong indicator to provide resistance. It provided resistance late last week, and it has now taken the place of the 50 SMA which used to provide resistance before. So, the upside does look a tough challenge for buyers.