Booking Profit in EUR/USD, as it Reversed Down at the 100 SMA

Skerdian Meta•Monday, April 13, 2020•1 min read

The main trend in EUR/USD has been bearish this year, as the sentiment turned negative again. We saw a big surge in the first half of the month, as the USD turned bearish, but the bearish trend resumed again, after the climb stopped at 1.15 by the middle of March.

The price reversed down and fell nearly 9 cents lower, falling to 1.0630s which means new lows. We saw another pullback higher at the end of last month, but the sellers returned again and pushed the price lower; but last week another pullback took place.

Although, that pullback looked pretty weak compared to the previous ones and besides, this forex pair was finding resistance at the 100 smooth MA (green) on the H4 chart. So, we decided to open a sell forex signal up there and today, the price is reversing down after forming an upside-down hammer.

The upside-down candlestick is a reversing signal and failing to push above the 100 SMA. Now the price has reached our take profit target, but the 20 SMA (grey) is stopping the decline. Anyway, we booked profit, so even if the reversal stops here, we’re fine with it.

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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.