Read the full story: EUR/USD heading Towards 20 Day SMA – Markets Higher On China GDP
EUR/USD has moved strongly higher over the Asia trading session and the earlier hours of the European trading with price potentially heading in the direction of the daily 20 period SMA, which has provided dynamic resistance on many occasions recently – as can be seen on the daily chart below.
European markets had put in gains on Monday, following the successful sale of French T-bills which was a welcome relief following the credit downgrades on Friday. Upcoming Spanish T-bill auctions will be another testing factor regarding overiding market sentiment. There is a chance that much of this move higher is coming on short covering as profits are taken.
The following chart shows the recent price action around the 20 day SMA.
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