The EUR/USD has been quite bullish for more than a year, although it is trading below the highs of 1.2350s, which were reached in the first week of January. We saw a retreat form January until the end of March, as the USD started gaining some strength, but it ended at 1.17 for this Forex pair, and since early April, the EUR/USD has been bullish again.

Moving averages have been acting as support on the H4 chart, particularly the 50 SMA (yellow) and the 100 SMA (green). These two moving averages have held the price during retreats lower, pushing the pair higher.

The 100 SMA still holding as support for the EUR/USD today

Yesterday, the EUR/USD retreated downwards, but today the 100 SMA is providing support once again. The price has bounced 20 pips higher off that moving average, but it’s not turning bullish yet. ECB member Knot made some positive comments earlier today, but they’re not helping the Euro much.

Comment by ECB Policymaker Klaas Knot

• Recovery in Europe seems to be going faster than expected
• Sustainable recovery only possible if the coronavirus is contained on a global scale