Shorting the Pullback in EUR/USD - Forex News by FX Leaders
EUR/USD is trading between 2 MAs now

Shorting the Pullback in EUR/USD

Posted Monday, August 24, 2020 by
Skerdian Meta • 1 min read

EUR/USD has been bullish for several months, as the Euro has gained some momentum. But, the main reason has been the increased weakness in the USD, which has sent the Buck tumbling lower against all pairs. As a result, this pair has climbed more than 10 cents in the last few months.

But, it seems like the upside momentum might have ended, at least for now. EUR/USD made a new high last Monday, climbing to 1.1960s, but it turned lower from there and has been declining since then, making lower highs, which is a sign that the pressure has shifted to the downside now.

By the middle of last week, the price found support at the 50 SMA (yellow) on the H4 chart. EUR/USD bounced from there, but the 20 SMA (grey) turned into resistance, reversing the price back down. EUR/USD fell to 1.1750 last Friday, but the other moving average held as support and today we are seeing another bounce higher. Although, the bounce seems over now, while the 20 and 50 SMAs are providing resistance, so we decided to take this opportunity and go short on this pair. Now we are waiting for the bearish trend to resume again.

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About the author

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.
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