EUR/USD Forms A Reversing Pattern at MAs - Forex News by FX Leaders

EUR/USD Forms A Reversing Pattern at MAs

Posted Monday, September 9, 2019 by
Skerdian Meta • 1 min read

EUR/USD turned pretty bullish at the beginning of last week as the US turned soft and the sentiment improved in financial markets. This pair came back from the dead below 1.10, although the buyers weren’t able to break above the 100 SMA (green) on the H4 time-frame chart.

The 200 SMA is keeping EUR/USD  in check today

That moving average provided resistance last week and it is doing the same job today, as the price keeps knocking on it. If we switch to the H1 chart, we se that it is the 200 SMA (purple) which has been providing resistance. This moving average was pierced last Thursday, but the price returned back below it.

Today EUR/USD is finding resistance at the 200 SMA again. The price pierced it earlier, but it has retraced back below it and formed a doji candlestick right below the 200 SMA. This is a reversing signal and stochastic is overbought on this time-frame, so we decided to go short earlier on. Now let’s see if the reversal will happen.

 

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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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