Trends have chilled out enough to produce a couple of crossovers this week. Question is, were these pauses enough to yield valid signals?
Unlike in the previous weeks, EUR/USD broke below its SMAs and traded on a wide range for most of the week.EUR/USD’s moves produced TWO new crossovers. The first signal yielded a short trade that had to be closed for an 82-pip loss when the 100 SMA crossed above the 200 SMA.
GBP/USD also saw its uptrend steady into a range this week and this produced one SMA crossover.
Like in EUR/USD, Cable’s crossover didn’t materialize until after a day or two later. Unlike in EUR/USD, though, Cable’s trade remains open for next week’s update.
As for EUR/JPY, the pair remains signal-free. In fact, the SMAs have widened their gap to signal stronger momentum!
Here’s a look at the latest positions:
SMA Crossover Pullback Positions as of August 18, 2020
Now that we’re seeing the end of strong trends for the three pairs, we can either expect to see more fakeouts or more crossovers that show up before the next intraweek trends begin.
Check out how this system fared in Q2 2020!