Is EUR/USD Going to Reverse at the 100 SMA Again?
Skerdian Meta • 1 min read
EUR/USD had quite a bearish week last week. It started on Monday at 1.1215 after the surge in the last two days of the previous week, after the really soft US manufacturing and services report. But, it turned bearish right away as the risk sentiment turned negative again because of the trade war and this pair lost around 100 pips.
But we saw another reversal above 1.11 last Friday. This level has turned into the ultimate support for EUR/USD; it has been holding for more than a month and we have seen EUR/USD reverse three times from that area. Although, the trend still remains bearish as the highs keep getting lower.
Now we are heading towards the 100 SMA (red) once again. Last Friday and today has been quite bullish for this pair, driven mainly by some USD weakness. The 100 SMA has been providing resistance several times before for this pair which makes it a solid resistance indicator. For this reason, I’m preparing to sell EUR/USD right at the 100 SMA since this pair is also overbought on the H4 time-frame chart.