EURCHF Down 11 Pips Over Past Hour, Entered Today Down For the 2nd Consecutive Day; Breaks Below 20 Day Average

Hourly Update

(Last Updated September 11, 2020 16:15 GMT)

At the moment, EURCHF’s rate is down -11 pips (-0.1%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as EURCHF has now gone down 4 of the past 5 hours. Regarding the trend, note that the strongest trend exists on the 20 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on EURCHF. Given that we see an uptrend on the 5 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. With that said, traders should also note the downtrend on the 20 hourly candle timeframe, so the meaning of the candles may require further exploration. Regarding moving averages, it should first be noted that price has crossed the 20 hour moving average, resulting in them with price now being below it. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

EURCHF End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURCHF is down 38 pips (0.35%) since the previous day (opening today near 1.07676), marking the 2nd consecutive day it has gone down. Out of the 40 instruments in the Forex asset class, EURCHF ended up ranking 25th for the day in terms of price change. The price chart of EURCHF below illustrates.

EURCHF

EURCHF Technical Analysis

Notably, EURCHF crossed below its 20 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 7.9 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURCHF, with 13 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 13, which is very bullish. As for the rationale, technical traders seem to be citing the appearance of channel and fibonacci technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Usually, in most 5-wave Impulse; their 3rd waves( wave 3) are the most profitable wave🤑💾On the chart, you would notice I labelled 1, 2, 3….You can see wave 1You can see wave 2🤔But we are still expecting wave 3(Bullish)While we are trading wave 3, we should expect its length to grow to either 1.0 fib….extension (of wave 1) or 1.618 fib.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram