The 20 SMA is Not Letting EUR/USD Turn Bearish, as it Turns From Support to Resistance

EUR/USD has been bullish this month and moving averages have been doing a great job in pushing the price higher

Written by: Skerdian Meta • Tuesday, December 17, 2019 • 1 min read

• Last updated: Tuesday, December 17, 2019

Sellers gave up, as the 20 SMA kept pushing higher

[[EUR/USD]] has had a roller-coaster ride in the last few months. October was a bullish move for this pair, as the USD turned bearish due to the weakening manufacturing activity, as the US ISM manufacturing report showed back then. But, the Eurozone is in a much worse position when it comes to manufacturing, industrial production and inflation.

So, the larger bearish trend resumed again last month and the 20 SMA (grey) turned into resistance. But this month, the ISM manufacturing report is doing harm to the USD again. We saw yet another weak ISM report in the first day of December, which shows that this sector is deepening the contraction, instead of improving.

As a result, EUR/USD has turned bullish again this month and moving averages are working as support now. The 50 SMA (yellow) turned into support in the first two weeks, while this week the 20 SMA (grey) has taken up that job. We saw EUR/USD find support at this moving average yesterday after the pullback lower and today sellers finally gave up on their plan to turn EUR/USD bearish, as the 20 SMA kept pushing the price higher. So, EUR/USD remains bullish again now and retraces lower should be seen as good opportunities to go long on this pair.

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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.