Selling the Retrace in EUR/CHF at the 50 SMA
Skerdian Meta • 1 min read
EUR/CHF surged more than 4 cents higher during May, as the Euro turned bullish on comments about the coronavirus recovery fund from European leaders. The CHF also got a kick from the Swiss National Bank which intervened in forex markets,weakening the CHF, as they usually do.
But, EUR/CHF couldn’t even reach 1.10 and the climb ended above 1.09. The price broke below all moving averages on the H4 chart, giving back most of the gains, as the sentiment turned negative again in financial markets, due to the increase in coronavirus cases, or whatever the tests show, because the tampons don’t really show the virus, but rather some enzymes which cells release wen they are stressed up.
Moving averages turned into resistance eventually as EUR/CHF moved below them. The 50 SMA (yellow) provided resistance last week, reversing the price down after the pullback higher, despite being pierced. Today we are seeing another pullback and I decided to open another sell forex signal there. The price has pierced the 50 SMA again, but it’s not running anywhere, so it will likely turn don again.