Is the 50 SMA Going to Break as Support for EUR/USD in the Third Attempt?

EUR/USD has slipped lower this week after being bullish this month, but the 50 SMA is acting as support again now

Skerdian Meta•Friday, October 25, 2019•1 min read

EUR/USD might turn bearish if the 50 SMA breaks

[[EUR/USD]] has been bearish for a long time and in the last days of September it made some new lows, pushing below 1.09. During the downtrend, moving averages were providing resistance on the top side on pullbacks higher. But, this month the situation changed.

The sentiment improved in financial markets due to the partial trade deal between US and China, as well as the Brexit deal. The USD turned softer as well, as manufacturing fell in contraction in the US. As a result, EUR/USD turned bullish and climbed around 300 pips.

But, the sentiment was hurt a little this week, with the Brexit deal having difficulty at the British parliament and this pair has retraced lower. Although, the 50 SMA (yellow) is acting as support again for this pair. This moving average provided support twice in the last two weeks and it is doing the same again now.

The price is still sticking around this MA, so there is a chance that we might se a break today. If that happens, then the larger bearish trend will likely resume again and the 50 SMA would be a good place to sell EUR/USD on pullbacks higher. But, let’s see first if the 50 SMA will break.

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ABOUT THE AUTHOR See More

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.