Should We Buy the Pullback in EUR/USD?
EUR/USD has retraced down today, but it is facing the 50 SMA
The EUR/USD was quite bullish from March until August this year, until it broke above the big round level at 1.20. Weak stop losses above that level were broken and the price reversed back down, falling to 1.16, which turned into a support area for this pair.
The price bounced off that support zone in the first week of November and climbed above 1.19 last week. But at the end of last week the price pulled back to 1.1750 as the USD gained some ground. This week though, the price has been quite bullish once again for the EUR/USD.
The trend has been consistent this week, with the 50 SMA (yellow) holding as support on the H1 chart during pullbacks. Yesterday we saw a bounce off this moving average, and today the EUR/USD has returned to the 50 SMA once again. Now the retrace is complete on this time-frame chart, so we are thinking about opening a buy forex signal. But, we will see if the EUR/USD forms a bullish reversing signal, such as a doji candlestick, here.
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