The Uptrend Seems Over for EUR/USD, As MAs and Support Levels Get Broken
Skerdian Meta • 1 min read
EUR/USD had a great time during May as it was surging higher and after a pause in June, the surge resumed in July again, pushing the price in this pair pretty close to 1.19. The pace of the increase slowed in August, but EUR/USD was still making gains, breaking above 1.20 on September 1.
That seems to have been the target for EUR/USD buyers and some stop hunting was going on, triggering weak stops just above 1.20. But, the price formed a strong upside-down hammer candlestick up there, which is a strong bearish reversing signal.
EUR/USD reversed back down, but the 20 SMA (grey) and the 50 SMA (yellow), as well as the support levels at 1.17 and 1.1750 were keeping this pair in limbo for several weeks. But, this week we saw a break of everything; moving averages were broken first and then the support levels. So, the bearish trend seems over now and we will try to sell retraces higher, probably at the MAs, which are standing at 1.18 now.