The EUR/USD turned bearish last week Wednesday and has been trying to enter a bearish phase since mid-February. Sellers are having a tough time trying to build a proper bearish trend.

That being said, buyers weakened plenty in the last month or so and sellers have been in control most of the time. The last few days have been moderately bearish for the EUR/USD as the USD picked up the pace.

The 50 SMA is capping the retrace

This morning the USD was in a retreat, meaning the EUR/USD is making a pullback higher as the market sentiment improves. The USD/JPY climbed higher as the market moved away from safe havens and the cash flowed into risk currencies. The Euro, the Pound, the Aussie, and the Kiwi retraced higher this morning.

This pullback might be over, particularly for the EUR/USD. This forex pair climbed around 40 PIPs this morning and the 50 SMA (yellow) waits just above the current price on the H1 chart. At the moment, the EUR/USD is trading below 123, a big round number and a resistance level in itself.

The 50 SMA has been providing support and resistance before and is expected to play the same role again now. The stochastic indicator is overbought on this timeframe chart and the retrace seems to be complete.

The 100 SMA should provide some resistance if buyers decide to push above 123

If we switch to the H4 chart, we can see that this pair is trading below the 100 SMA (red). This moving average has been providing support in the last six weeks. Sellers managed to push under this moving average last week and are supposed to turn into resistance now. We haven’t opened a sell signal yet, we are waiting to get a better price higher up.