⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

The 50 SMA Has Now Turned Into Resistance on EUR/USD

EUR/USD has been trading in a strong uptrend for a long time. The technical indicator which held the uptrend in place in recent weeks, has been the 50 SMA (yellow) on the H4 chart. As you can see from the image below, this moving average has been providing support in the last 6-7 weeks.

There was an occasion when this moving average was broken, but the 100 SMA (green) held its ground. The 100 SMA replaced the 50 SMA. It provided support and the price reversed and EUR/USD resumed the uptrend.

EUR/USD is now stuck between two SMAs; the 50 SMA on top and the 100 SMA at the bottom

Now, a similar scenario is taking place on this forex pair. The price slipped below the 50 SMA yesterday and it reached the 100 SMA today. It bounced more than 80 pips after kissing that moving average, so we can say that the 100 SMA is still standing strong.

But, this time the 50 SMA has turned into resistance it seems. The price pulled back lower after touching the 50 SMA. Actually, this might be a sign that the trend might be changing. Although, we need to break below the 100 SMA (green). If that happens, the buyers won’t be so confident anymore and the trend will be easier to change, but let’s wait.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
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.
Related Articles