Selling the Retrace in EUR/USD at the 100 SMA
EUR/USD has turned bearish this year, after being bullish from April last year until the first week of January. In fact, this has turned into one of the most bearish pairs during this time, losing around 650 pips from the top at 1.2350 to 1.17 lows, which was printed yesterday.
The first leg of the beartish move took place in January, while the second leg started in the last week of February and it is still continuing. Although, we saw a bounce off the 1.17 area yesterday. Tis area used to provide support from August until October last year, so it seems like buyers gave it a go down there, to see where they could take this pair.
EUR/USD has increased around 50 pips today after the bounce, but it is finding it hard to overcome the 100 SMA (green) on the H1 chart. Besides that, the previous support aty 1.1750s seems to have turned into resistance now, so we decided to open a sell forexs signal, targeting the lows from yesterday, since the stochastic indicator is overbought as well now. We are short on EUR/USD now, hoping that the bearish trend will resume soon.
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