A Quick Trade in EUR/USD After the Jump from the Softer US YoY CPI Figure
EUR/USD has been retracing higher today, but this week’s trend remains bearish. This forex pair made the first bearish move on Monday, declining around 100 pips from top to bottom. Yesterday we saw a retrace higher during the European session, but the sellers returned and they reversed the price back down, completing the second bearish leg of this downtrend.
Today, EUR/USD has retraced higher again during the European session. The softer US YoY headline CPI inflation figures that were just released helped the buyers sending this pair 20 pips higher, but we see this jump as the completion of the retrace before the next bearish move.
EUR/USD is finding resistance at 100 SMA (red) on the H1 chart and the 200 SMA (purple) is also adding more strength to the resistance. Besides, the jump has now stopped and the stochastic indicator is overbought, so we decided to open a quick sell trade in this forex pair.
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