EUR/USD tried to turn bullish in October, as the sentiment improved in financial markets, helping the Euro, while the decline in US ISM manufacturing turned the USD pretty bearish that month. That didn’t last long though, and in November the trend shifted to bearish again.

But, this month the buyers are trying to get things into their hands again. We saw a quick reversal at the beginning of this month, after the ISM manufacturing report came in pretty weak again from the US, showing that this sector fell deeper in contraction, which is a negative sign for the US economy.

The USD turned bearish again and EUR/USD climbed around 140 pips from the bottom. Although, we saw a reversal on Friday last week, after the positive US employment and earnings report, as well as the improvement in consumer sentiment. As a result, the price fell to 1.1040, but pulled back higher and closed the day above the 50 SMA (yellow) and the 100 SMA (green).

So, those two moving averages are providing support for this pair and as long as the price stays above them, EUR/USD is considered bullish. We lost the opportunity to go long on this pair at those two MAs earlier, so will try to open a buy signal if we saw another pullback down there.