Selling EUR/USD Below the Previous Support

The EUR/USD was really bullish last year, climbing from around 1.08 to 1.2350s by the first week of January this year. But since then, the highs have been getting lower, which indicates that the bullish momentum might be over now.

In January we saw a quick reversal down, but the decline ended at 1.1950, which formed a support area around it. During most of February, the EUR/USD moved higher, but it couldn’t make any new highs, which shows that sellers are stronger than buyers in this pair for now.

The currency pair moved lower, and last night the sellers broke below the previous low at 1.1950. Earlier today, we saw a retrace higher, but it seems like the previous support has now turned into resistance, so we decided to open a sell forex signal below it. The 20 SMA (gray) was also helping to provide resistance, which has rejected the price now. The EUR/USD is retreating back down now, so this trade looks good at the moment.