EUR/USD Reverses at the 200 SMA But Stuck Between 2 MAs Now
[[EUR/USD]] turned bullish during October, as the sentiment in financial markets improved, after the US and China got close to a partial trade deal. The USD also turned pretty bearish last month, after the US manufacturing fell into deeper contraction.
As a result, this pair climbed around 300 pips, but the climb ended at 1.1180. After all, the Euro doesn’t have any reasons to rally whatsoever. So, this pair turned bearish eventually and it declined for around 200 pips this month. But, the USD turned bearish again this week and EUR/USD has climbed 100 pips higher again.
Although, yesterday the price found resistance at the 200 SMA (purple) on the H3 chart, as shown above. The price formed an upside-down hammer below that moving average, which is a reversing signal and the EUR/USD has retreated lower today. The 200 SMA also comes at 1.0990, which is the 50% Fibo retracing level from the high at the end of October, to the low.
Although, the 100 SMA (green) which provided support at the end of October on the way up is providing support again now. If sellers want to turn EUR/USD bearish, they have to push below the 100 SMA. That will be the sign that sellers have taken things in control. So, we might open a sell signal if the 100 SMA breaks.
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