Buying the Pullback in EUR/USD at the 50 SMA
EUR/USD has retraced lower, but the pullback seems over at the 50 SMA
The EUR/USD has been really bullish this year, and it seems like it is going to close 2020 on a high. The main reason for this uptrend has been the pronounced weakness in the USD, which has been declining non-stop since March, which makes most pairs look quite bullish, with the AUD/USD and the NZD/USD making another run to the upside just a while ago.
Let’s hope the retrace ends at the 50 SMA now
The first strong bullish move came at the end of May, then we saw a consolidation in July. From August until late November this pair went through another consolidation period, but the uptrend resumed again, and December has been another strongly bullish month.
This week has been totally bullish once again, as traders expect the uncertainty surrounding the USD to continue. The EUR/USD broke above last week’s high at 1.2270 yesterday, making new highs, but it has retraced lower in the last few hours. Now the price is trading at the 50 SMA (yellow) on the H1 chart and the stochastic indicator is oversold on this time-frame, so we decided to open a buy forex signal here. Now let’s hope that the retrace is over and that buyers will try to make a new high just before 2020 ends.
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It was not a good idea to buy the EUR/USD Today. If we have a look at the H4 TF, we can see that the pair has broken all the Ichimoku Support (Tenkan and Kijun) , and also if we compare the pair EUR/JPY today is on very high sell. So it will be difficult today for the Eur to pull back. I can see a stop only at 1,2195 the kumo support in H4 TF. Francesco
True that it was a bit premature to buy at the end of the year. But rather than the Ichimoku, it was more the thin liquidity and the closing of positions before the new year.