EUR/USD Turns Lower After Being Rejected by the 10 SMA
Skerdian Meta • 1 min read
EUR/USD turned bearish towards the end of last week after failing several times to break above the 100 smooth moving average (red) on the H4 chart. On Monday we saw this pair extend the bearish move further after the further contraction in the German and Eurozone manufacturing activity, which has also started to spill into the services sector.
But, the USD went through a period of weakness in the last few days, which helped EUR/USD reverse higher. Although, it was obvious that this latest climb was going to be weak because the Eurozone economy is heading towards recession and the European Central Bank has turned increasingly dovish, which should keep the Euro in check.
That’s what happened. This time it was the 100 simple MA(green) which provided resistance for EUR/USD. The buyers made a couple of attempts at this moving average yesterday but they failed to push the price above it. What can’t go up will end up going down, so eventually, this pair reversed lower.
We have a sell forex signal here which I opened yesterday, so this reversal goes in our favour. Now let’s wait and see if the larger bearish trend will resume once again.