EUR/USD Finds Support at the 20 SMA
Skerdian Meta • 1 min read
EUR/USD was trading sideways for about two months, after it surged to 1.15 by the middle of March and then reversed back down. The range was roughly 250 pips wide, with 1.0750s being the bottom, while the top stood at 1.10 which was providing resistance.
But, towards the end of last month, the top side of this range was broken as the USD turned weaker, while the Euro strengthened after comments from European leaders about the coronavirus recovery fund. as a result, EUR/USD climbed more than 500 pips in a little more than a week.
During this time, the 20 SMA (grey) provided support for EUR/USD, pushing this pair higher. This shows that the pressure to the upside has been quite strong. Although, the price started to retrace lower at the end of last week, but the 20 SMA came to help once again for buyers. We opened a buy forex signal above this moving average earlier today, now we are waiting for EUR/USD to move higher, since the 20 MA rejected the price in the first attempt.