The Uptrend Stretches Higher in EUR/USD as it Breaks Above 1.14
Skerdian Meta • 1 min read
EUR/USD was declining during the first half of February after it failed to hold on above the 1.15 level. During that time, the 20 SMA (grey) was providing resistance on the H4 time-frame But the trend changed two weeks ago and the 20 SMA turned into support for this pair.
This moving average has been holding the dips after the price broke above it and it has pushed the trend higher for more than a week now. The 100 SMA (red) was providing resistance for about a week but EUR/USD buyers pushed above it earlier this week. The 200 SMA (purple) which stands just below 1.14 then turned into resistance yesterday, but today the buyers finally broke this moving average as well.
Now, we are above 1.14 and the next target is the resistance zone around 1.1450. That level comes with a 10 pip buffer zone above and below it. We have seen this pair reverse down from that area before, so I’m thinking of going short on EUR/USD up there when we get there. Although, I will see how the price reacts at that zone; if it forms a reversing candlestick then I will probably short this pair.