The EUR/USD was bearish in the last two years, as the USD was trading on a bullish trend. But, the situation reversed in March this year, when the USD turned bearish, due to the surge after the initial coronavirus panic. Since then, the USD has been declining continuously.

As a result, the EUR/USD has been quite bullish this year. We saw a pullback in September and October, but that retrace was very weak, suggesting that the bullish trend would resume soon, which it did as soon as the US election day was over, when the bullish trend picked up further pace.

The 50 SMA continues to push the EUR/USD up

The big round level at 1.20 was broken on the last day of November and the EUR/USD climbed to 1.2270s by the end of last week. During this time, moving averages have been doing a great job in providing support during pullbacks lower and pushing the trend higher.

The 50 SMA (yellow) in particular has been the ultimate support since late November, providing many good buying opportunities, and now the price is heading towards that moving average again. We might go long from here, but we are heading towards the end of the week, since everything is closed for Christmas tomorrow. But you can follow our trades on the forex signals page.