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Shorting the Retrace in EUR/USD at the 100 SMA

EUR/USD has had such an interesting period in the last several weeks. It surged higher at the end of February, reaching 1.15. But the price reversed down in the second week of March, taking the price nearly 9 cents lower, making new lows.

Although, in the last week of March, we saw another reversal higher, as the demand for the USD as a global reserve currency declined. EUR/USD rallied around 5 cents higher. But, the sellers returned again last week and the price fell to 1.07070s.

Today though, we saw a bullish retrace higher during the Asian session, which continued during the European session as well. But, it seems like the 100 SMA (green) is providing resistance on the H1 chart. It rejected EUR/USD in the first attempt and an upside-down hammers candlestick formed below it, which is a reversing signal. We decided to sell below that moving average, hoping that the pullback will be complete and the bearish trend will resume.

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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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