The 10 and 21-day moving averages have crossed bullishly once again in EUR/USD today with the move more decisive than yesterday’s nudge…
In theory, a trend follower would buy EUR/USD when the 10-day moving average crosses above the 21-day moving average and only sell when the 10-day average moves back below the 21-day average. Trend-following systems tend to give lots of false signals but they keep you in trades for very long time and are very profitable in sustained trends.
This move in the averages is probably more important in that trend-followers may use the signal to cover shorts taken when the averages crossed bearishly back in April when EUR/USD was above 1.30…
