Another Sign That EUR/USD Is Heading Lower
Skerdian Meta • 1 min read
EUR/USD has been quite bullish in the last several weeks, as the USD turned dovish, while the Euro gained momentum after comments about the coronavirus recovery fund from European officials. As a result, EUR/USD climbed around 6 cents higher, but it failed to take put the previous high at 1.15, which was a first sign that the upside momentum was fading.
This pair retreated more than 200 pips lower, but buyers had another attempt at the upside. Although, this time they couldn’t break even above 1.14, making lower lows on the H4 chart, which was another sign that buyers were giving up and sellers were gaining control.
The price slipped below the 50 SMA (yellow) again but bounced higher off 1.1320s, which seem to have placed a support area around there. Although, buyers couldn’t reach the 50 SMA today and the price reversed back down below that moving average, which is yet another sign that buyers are getting weaker each time. We are already short on this pair with a long term sell signal, now we are waiting for the 100 SMA (green) to be broken in EUR/USD, so this pair can head over.