Shorting the Retrace in EUR/USD at the 100 SMA
Skerdian Meta • 1 min read
EUR/USD turned bearish again by the middle of March, following a 7 cent surge in the previous two weeks, as the USD turned bearish. The decline has been continuing since then,with highs getting lower during pullbacks, which shows that the pressure in on the downside.
Towards the end of March, this pair made some new lows, falling to 1.0630s, which opened the door for 1.05 first and maybe even lower after that. Although, nothing is certain now because of the coronavirus lockdown. We will see which country will start reopening first.
In the last few sessions of the previous week, we saw a pullback higher in EUR/USD, which continued today during the Asian and European sessions. But, it seems like the pullback might be over now. EUR/USD found resistance at the 100 SMA (green) on the H4 chart, which has provided resistance before for this pair. The pullback seemed complete and we sold this pair a while ago. Now, we are 20 pips in profit already, so it looks like a god trade. Let’s wait for the price to reach our take profit (TP) target now.