Opening A Long Term Sell Signal in EUR/USD, Since the Retrace Seems Complete at 1.20

Skerdian Meta•Thursday, April 15, 2021•1 min read

[[EUR/USD-sponsored]]

EUR/USD turned bearish in the first week of January, after being bullish for nearly a year. It reversed at 1.2350, which didn’t hold any particular importance, and fell around 650 pips lower, until the end of March, as the decline in the USD stopped.

This month we have seen a retrace higher, taking this pair 300 up to 1.1996 earlier today. This meas nearly 50% Fibonacci retracement level and it is a very important level too, which has provided resistance before for EUR/USD .

The 50 SMA (yellow) and the 100 SMA (green) which have been providing support and resistance before, aslo stand around this level, helping in providing resistance this time. The retrace now seems complete, with the stochastic indicator severely overbought, so we decided to take this opportunity and open a sell forex signal, based on the daily chart above.

Fundamentals also point increasingly to a strong USD bullish reversal to come at some point, with today’s date showing further improvement for March, especially retail sales which surged. So, we just opened the trade, targeting March lows above 1.17.

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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.