EUR/USD Also Bouncing Between MAs - Forex News by FX Leaders
EUR/USD H4 Chart

EUR/USD Also Bouncing Between MAs

Posted Monday, January 25, 2021 by
Skerdian Meta • 1 min read

EUR/USD has been bullish since May last year, after the European Central Bank (ECB) announced it would start the PEPP programme to help fight the coronavirus effects. There was a retreat during September and October, after the failure to break the big round support area at 1.20, but then the bullish trend resumed again after the US presidential elections.

The resistance zone surrounding 1.20 broke eventually in December and buyers pushed this pair to 1.2350s. Although after the first week of this year, we saw a bearish reversal and EUR/USD lost around 300 pips. Last week we saw a bullish reversal and the price has been climbing higher, but this looks more like a retrace.

The 100 SMA (green) turned from support to resistance in the second week of January and it is acting as resistance again now, having rejected EUR/USD earlier today. It was aided by the 200 SMA as well today. The price declined around 80 pips after the rejection, but the 50 SMA (yellow) is acting as support now. EUR/USD has bounced a bit off that moving average, but is not too far from it. We are thinking of going long perhaps, with a small buy signal, but will see how the price reacts now.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments