Continuing to Buy Pullbacks in EUR/USD
Skerdian Meta • 1 min read
EUR/USD has turned quite bullish since the middle of May, after European politicians commented about a coronavirus recovery plan, while the ECB increased the stimulus package. The trend in this pair was quite strong until the middle of June, with the USD weakness also playing a part in this, but then we saw a slight retrace until the beginning of July.
The USD weakness returned again this month though and buyers returned in EUR/USD. But the trend is not as strong as in May/June. Nonetheless, pullbacks lower have presented traders with some good buying opportunities, as shown in the H4 chart above.
The 50 SMA (yellow) and the 100 SMA (green) have helped as support indicators, but the 20 SMA (grey) has been the definite support recently. The price reversed back up last week from this moving average after a couple of doji candlesticks, which are bullish reversing signals, whole yesterday it bounced off the 20 SMA again. We opened a buy forex signal down there during the pullback and booked profit later during the US session. So, buyers remain in charge in this pair and we will try to buy retraces lower, until the sentiment changes.