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