Picking A Trade Between MAs in EUR/USD
EUR/USD broke below the 20 SMA yesterday, but the 50 SMA held as support on the H4 chart
[[EUR/USD]] has been quite bullish in the last month or so. This pair made a bullish move by the middle of last month, after comments from European leaders about the coronavirus recovery plan, sending this pair to 1.10. But that big round level held in the first attempt and EUR/USD pulled back lower.
Although, the 50 SMA (yellow) and the 100 SMA (green) held as support, which was a bullish signal and then EUR/USD began the bullish trend. The USD turned quite bearish during this period, which helped this pair climb higher and the 20 SMA (grey) did a good job as support, pushing the price higher.
That was another bullish signal, since buyers weren’t waiting for larger MAs to catch up. Instead, they were going long at every slight opportunity they were getting. But the area around 1.14 offered some decent resistance in the last few days. Yesterday EUR/USD retreated lower and broke below the 20 SMA on the H4 chart, but the 50 SMA held as support and we decided to go long from there.
EUR/USD bounced off that moving average and we closed our signal manually for around 30 pips in profit. Now EUR/USD is trading in between these two moving averages, so we might try to trade this range again, selling at the 20 SMA on top and buying at the 50 SMA at the bottom.
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