FX Markets

The EURO DOLLAR and the SMA 200 (*)

(*)The 200-day simple moving average (SMA) is considered a key indicator by traders and market analysts for determining overall long-term market trends. It is calculated by plotting the average price over the past 200 days, along with the daily price chart and other moving averages.

The indicator appears as a line on a chart and meanders higher and lower along with the longer-term price moves in the instrument that is being charted. At times, the 200-day SMA serves as a support level when the price is above the moving average or a resistance level when the price is below it.