EUR/USD 4 Day Down Streak Ended; in a Downtrend Over Past 30 Days

EUR/USD Price Recap

A moment of silence, please, for the end of EUR/USD’s 4 day up streak; price ended yesterday down 43 pips (-0.39%) to finish the day at a rate of rate of 1.08724. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 2.34% from the day prior, but down 22.3% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/USD ranked 33rd yesterday in terms of percentage price change. Here is a 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 1.1024, 1.1084, 1.1063 and 1.1118 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 151.2 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 7 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURUSD, with 24 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 2.18, which is bullish. As for the rationale, technical traders seem to be citing the appearance of channel and relative strength index technical patterns. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

EUR/USD bounces back from a fresh monthly low (1.0891), but the bearish price action from the start of February may persist as the RSI flirts with oversold territory.