Last Friday we opened a sell forex signal in EUR/USD as this pair was retracing higher last week, after the downtrend of the previous week. The price was getting pretty close to the 100 smooth moving average (green) on the H4 chart and we decided to go short below the 100 SMA.
The price started to pullback on Friday evening before markets closed, with traders closing some of their buy positions. Yesterday we saw the pullback stretch a bit further down during the Asian session and our signal was closed in profit overnight.
But, the 20 SMA (grey) turned into support last week and it held well as support for this pair yesterday as well. This moving average stopped the decline and started pushing the price higher again.
Today, the price has reached the 100 SMA again on this time-frame and we decided to open another sell forex signal. EUR/USD pierced the 100 SMA for a while, but it is retreating down now, so let’s hope the bullish momentum is over.