Getting Ready to Sell EUR/CHF at the 20 SMA - Forex News by FX Leaders

Getting Ready to Sell EUR/CHF at the 20 SMA

Posted Saturday, January 27, 2018 by
Skerdian Meta • 1 min read

A few hours ago I was looking at EUR/CHF as it was retracing from the lows at 1.1620s. at the time it was at 1.1650s and I was hopping to see 1.1680. That level has been support and resistance in the last few days, so it was a good place to open a sell signal.

Also, the 50 SMA (yellow) was standing around there as well, which would have added extra strength to that level. But, the 20 SMA took over from the 50 SMA and the price reversed after kissing that moving average.

Switching from trading the 50 SMA to trading the 20 SMA

The trend can be considered quite strong when the smaller period moving averages come into play. The safe haven currencies found some strong bids after the BOJ (Bank of Japan) chairman Kuroda confirmed that the Japanese economy is expanding moderately and that inflation is progressing. That helped the CHF as well and EUR/CHF tumbled, together with USD/JPY.

Now, this forex pair is retracing higher again and we are thinking of selling it at the 20 SMA. This moving average comes at 1.17650 now. We are still about 30-40 pips below that area, so by the time we get there the stochastic indicator will have become overbought and the retrace will be complete.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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