EUR/USD falls below 200-day SMA
EUR/USD rebounded strongly on Friday, though it failed to move back above the 200-day simple moving average (SMA).
Since late September there has been a strong move to the downside, with only a brief rally earlier in October. However, this failed to move back above broken trendline support, and led to a fresh move below the 200-day SMA.
The move has wiped out most of the gains made since early August. A close back above the 200-day SMA might indicate a low has formed for the time being. August’s low at $1.0780 might offer support, while below this comes the June low at $1.0670.
