Shorting the Retrace in EUR/USD at the 20 SMA

It seems like the trend has changed for EUR/USD, after being on a bullish trend since March last year, as the USD resumed the year-long decline. But, the decline might have ended for the USD, which has reversed all major pairs, particularly since the last week of February.

EUR/USD topped out at 1.2350 in the first week of January, but the big decline has come in the last two weeks. This forex pair lost around 400 pips in the last two weeks, but it retraced higher to 1.1915 today, which looked like a good opportunity to open a sell forex signal.

We waited until the price reached the 20 SMA (gray) on the H4 chart, which turned into resistance for this pair. The stochastic indicator was approaching the overbought area, so we decided to open a sell forex signal up there and now the price is retreating back down.