EUR/USD Triggers Stops Above 1.20 and Returns Back Down
Skerdian Meta • 1 min read
It seemed like the bullish trend was coming to an end for EUR/USD , as this pair failed above 1.19 for the second time early this month. But, a base formed at 1.17 and sellers were offloading around that area. But the middle of August, this pair made a new high above 1.1950, so the bullish trend was back on again.
The lows also got higher, at 1.1750-60 towards the end of August, which reinforced the bullish trend idea. During the bullish moves, moving averages were providing support on the H1 chart and last week the 20 SMA took the situation under control, as the pace of the climb increased.
Although, buyers were still feeling shy of the major level at 1.20, as the numerous candlesticks below that level show. But, we saw a quick spike to 1.2011 a while ago, and then a quick reversal back below that level. The impressive US ISM-manufacturing report gave the USD another push and EUR/USD broke below the 20 SMA on this chart. But, the 50 SMA is still holding for now.
Although, the 50 SMA is under attack and the uptrend is in danger, after the failure to hold above the big level at 1.20 and the quick reversal 70 pips lower. So, this might be the end of the uptrend for this pair, since the US economy is doing much better than the Eurozone, but we will wait to see if buyers will have a second attempt. If they fail that, then we will open a long term sell signal in this pair.