Booking Profit in EUR/USD, as it Reversed Down at the 100 SMA
Skerdian Meta • 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.