EUR/USD Facing Support at 1.2050s, as the 100 SMA Keeps it Down

The EUR/USD has been massively bullish since May last year, after the ECB announced the start of the PEPP program, although, for political reasons in the US, the main driver for this was the increased weakness in the USD last year.

The EUR/USD broke above 1.20 towards the end of 2020, while in the first week of January, it moved above 1.23. But, it seems like the pressure has shifted to the downside since then. The EUR/USD reversed down in the second week of this year, breaking below the 100 SMA (green) on the H4 chart, which has been keeping it down since then.

The 200 SMA (purple) provided support for a short period, and we saw a bounce, but it didn’t last long before the price reversed back down. This moving average has been the ultimate resistance since then, reversing it again last Friday. However, buyers are now facing the support area above 1.2050, which has been holding for a couple of weeks. If the sellers push above it, then 1.20 comes into play.

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 See More
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 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers