The EUR/USD has been very trendy in the last few years. It turned quite bullish in 2017, after Donald Trump took power in the US, reversing from 15 year lows of 1.0330 and climbing around 22 cents, up to 1.2550. Then we saw a bearish reversal from 2018 until March 2020, and the price fell to the 1.0640s.

The situation changed after the coronavirus broke out, and since then, buyers have been in charge. What’s more worrying for Euro shorts is the fact that sellers are not having any success at all in putting up a decent fight. We saw a pullback down after a rejection in the 1.20 area, but just like in 2017, the 20 SMA (gray) held as support, and we saw a continuation of the bullish trend.

The EUR/USD broke above 1.20, similar to 2017, when it reached the 1.2550s. This time though, sellers attempted to reverse the price lower in January, forming a bearish reversing chart pattern, with 2 upside-down pin candlesticks, followed by a big bearish one.  It looked like the EUR/USD was going to turn bearish or go through a decent retrace lower, but last week, buyers came in again, and the weekly candlestick closed on a pretty bullish note.

However, the previous candlestick encloses last week’s one, so this isn’t a bullish reversing pattern, and sellers might come back again this week, but they failed to follow through on that bearish pattern, which invalidates it. This suggests that buyers are still in charge, and this is likely to continue until the 2017 high at 1.2550. In that case, we will try to buy the pullbacks lower, which you can follow on our forex signals page.