A Good Opportunity to Sell EUR/USD as it Fails at the 100 SMA Again - Forex News by FX Leaders
The 100 SMA held as resistance once again

A Good Opportunity to Sell EUR/USD as it Fails at the 100 SMA Again

Posted Wednesday, May 29, 2019 by
Skerdian Meta • 1 min read

EUR/USD has been on a bearish trend for more than a year. In recent months the downtrend has lost pace but this pair is making new lows nonetheless and the trend has become more straightforward. The 100 SMA (red) was providing resistance last year for this pair, but in the last two months, the 50 SMA has taken up that job.

In February, this pair made a retrace higher on the daily chart but reversed at the 50 SMA after forming a few doji candlesticks. At the same time stochastic indicator was overbought. The same scenario happened last month and again earlier this month. Last week, EUR/USD turned bullish on Thursday after the soft US economic reports, but the climb ended at the 50 SMA once again.

Now the stochastic indicator is overbought again and we are trading below the 50 SMA, which looks just like another bearish reversing scenario. The price didn’t form a reversing signal such as a doji or pin candlestick, but the fact that stochastic is overbought and we have reached the 50 SMA is enough for sellers to come in and a reversal to take place. So, this looks like a good opportunity to sell EUR/USD, with a stop above the 50 SMA.

 

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About the author

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.
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