EUR/USD Finding it Difficult to Push the Bullish Trend Above 100 SMAs – Time to Reverse Lower?

[[EUR/USD]] has been on a bullish trend so far this week after it made a bullish reversal last Friday on the back of some USD weakness. The sellers tried to reverse the short term trend yesterday as this pair slipped lower during the European session, but the stochastic became oversold on the H4 chart and this pair hadn’t made new lows, which tells us that the trend is up.

The USD went through another wave of selling in the US session yesterday and, as a result, EUR/USD pushed higher to 1.1350s. We decided to go short at that level since this pair became overbought on this time-frame chart, so we sold below the 200 SMA which was providing resistance on the H1 chart.

The price hasn’t made new highs since then and EUR/USD has formed several dojis and pins on the H4 chart. These are reversing signals. Besides that, the 100 simple MA (yellow) and the 100 smooth MA (red) have been also providing resistance on top, so the chart setup now points to a bearish reversal.

The FOMC minutes will be released this evening, therefore don’t expect to see big moves until then, but I hope that we see a pullback at least so we can book profit on this trade before the FOMC minutes.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
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
Comments
0 0 votes
Article Rating
Subscribe
Notify of
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
msara12@gmail.com
msara12@gmail.com
6 years ago

hello for all i need signal

HFM

Doo Prime

XM

Best Forex Brokers