Selling the Pullback in EUR/USD

EUR/USD has retraced higher but the retrace is complete on the H1 and H4 charts, so we decided to go short on this pair

Written by: Skerdian Meta • Friday, May 31, 2019 • 1 min read

• Last updated: Friday, May 31, 2019

[[EUR/USD]] has been on a bearish trend for more than a year, although this trend has slowed down considerably in recent months. But, the pressure is on the downside and the safest way to trade this pair is to wait for a pullback higher and then go short on it after the retrace has ended.

That’s what we did just now. We sold EUR/USD as this pair was retracing higher. It’s not much of a retrace, only 40 pips, but that’s enough since the stochastic indicator is almost overbought, which would make this pair overbought and the retrace higher complete on the H4 time-frame chart.

Besides that, the 20 SMA (grey) is providing resistance on this chart. If you switch to the H1 time-frame chart, you will see that the stochastic indicator is well overbought there and turning down now. On top of that, the price has formed a few reversing candlesticks so the chart setup on these two time-frames is pointing to a bearish reversal, hence the sell signal in this pair from us.

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ABOUT THE AUTHOR See More

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.