Getting Ready to Sell EUR/USD at the 50 SMA
EUR/USD has retraced 70 pips higher today and we are getting ready to sell the retrace
As we mentioned in one of our previous posts today, EUR/USD turned quite bullish towards the end of May, as the USD tumbled lower. As a result, this pair climbed more than six cents higher during this time, with the Euro also gaining strength on the coronavirus recovery plan from the EU and ECB.
EUR/USD climbed above 1.14 on Wednesday last week, but then pulled back down to refresh before the next move higher. But, buyers couldn’t push above 1.14 again, which was a sign that they were giving up. Eventually they gave up and EUR/USD slipped more than 200 pips lower.
The 20 SMA (grey) and the 50 SMA (yellow) which were providing support during the bullish move were broken on the H4 chart. Today, we are seeing this pair climb higher as it retraces. Now, EUR/USD is around 60 pips higher and we are looking to open a sell forex signal. The 50 SMA looks like a good place to sell, so we will wait for the price to reach that moving average.
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