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  • EUR/USD trades above the 100-hour SMA in Asia. 
  • The bulls failed to secure a close above 1.20 on Monday.

EUR/USD’s overnight dip below the 100-hour Simple Moving Average was short-lived. The pair is currently trading above the key SMA located at 1.1925, having printed a low of 1.1923 late Monday. 

Despite the quick recovery to levels above the 100-hour SMA, the immediate bias remains neutral. That’s because the pair is yet to clear the psychological hurdle of 1.20. The EUR bulls failed to establish a foothold above that hurdle on Monday, having faced similar rejection on Sept. 1. 

More importantly, the pair ended up carving a red candle with a long upper shadow. The bias will turn bearish if Monday’s low of 1.1922 is breached. That would shift risk in favor of a drop to 1.18 (Nov. 23 low). 

Daily chart

Trend: Bearish below Monday’s low

Technical levels