The Pullback Seems Complete on the EUR/USD Daily Chart - Forex News by Strategia Forex
Now its the 20 SMA providing resistance

The Pullback Seems Complete on the EUR/USD Daily Chart

Posted Tuesday, October 8, 2019 by
Skerdian Meta • 1 min read

EUR/USD turned quite bullish last week. The Euro doesn’t really have any reason to rally with the economy near stagnation and especially the manufacturing sector being in deep recession. But, the US ISM manufacturing also fell deeper into contraction in September, as last week’s report showed.

That sent the USD down and EUR/USD more than 100 pips higher. But, buyers are having trouble pushing the price above 1.10. They did try three times in the last three days, but failed every time. So it seems like this big round level has turned into a strong resistance now.

Besides that, the 20 SMA (grey) is also helping provide resistance. The 50 SMA (yellow) has usually been the main resistance indicator for EUR/USD, but now that the trend has picked up, the smaller period moving average has taken its place. The stochastic indicator is also overbought on the daily chart, which means that the pullback is complete. So, this might be a good opportunity to go short on this pair with a long term signal.

 

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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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