The Uptrend Picks Up Pace in EUR/USD, As Smaller MAs Come Into Play

EUR/USD retraced lower today, but the 20 SMA held as support on the H1 chart

Skerdian Meta•Wednesday, July 22, 2020•1 min read

The uptrend is getting stronger in EUR/USD

[[EUR/USD]] turned higher since the middle of May, after comments about the EU coronvirus recovery fund back then, which turned the Euro bullish. Yesterday morning the EU agreed on the recovery fund at EUR750 million, which turned the Euro even more bullish.

The USD on the other hand, has turned quite bearish now, as uncertainties regarding, the riots/protests, the coronavirus and the US elections in November are keeping the sentiment surrounding the USD negative. This has turned EUR/USD even more bullish and yesterday this pair broke above 1.15.

This is the first time EUR/USD climbs above 1.15, since January last year. This year the upside momentum has picked up pace again and the 20 SMA (grey) turned into support earlier today when this pair retraced lower. EUR/USD bounced off this moving average after forming a doji candlestick there, which is a bullish reversing signal. So, now the smaller MAs have come into play and we will probably go long on another pullback at the 20 SMA.

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.