EUR/USD Price Recap
EUR/USD is down 33 pips (0.3%) since yesterday (with its current price near 1.0911), marking the 6th day in a row a decline has happened. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 27.93% from the day before — and down 20.91% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/USD ended up ranking 33rd for the day in terms of day-over-day price change. Let’s take a look at price chart of EUR/USD.
EUR/USD Technical Analysis
The first thing we should note is that EUR/USD is now close to its 20, 50, 100 and 200 day averages, located at 1.1048, 1.109, 1.1065 and 1.1121 respectively, and thus may be at a key juncture along those timeframes. 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 137 pips away. Volatility for EUR/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone down 10 out of the past 14 days.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on EURUSD, with 26 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 1.73, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
Looking at EURUSD for any bounce off the bottom of the channel to scalp with a small lot size. RSI and MACD showing some bullish divergence off the trend line as well, but downtrend is still strong so this will be a quick trade.