EURUSD Up 9 Pips in Last Hour, Moves Down For the 2nd Straight Day; is Inching Close to 20, 100 and 200 Day Averages

Hourly Update

(Last Updated May 6, 2021 3:20 GMT)

At the time of this writing, EURUSD’s rate is up 9 pips (0.08%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on EURUSD. Given that we see an uptrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Most noteworthy in the world of moving averages on the hourly chart is that the 20 hour moving average has been crossed, so that price is now turning above 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.

EURUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURUSD is down 8 pips (0.07%) since the day prior (opening today near 1.20055), marking the 2nd straight day a decrease has occurred. Compared to its peers in the Forex, EURUSD gave its buyers a return that ranked 24th in terms of percentage change since the day prior. Let’s take a look at price chart of EURUSD.

EURUSD

EURUSD Technical Analysis

Notably, EURUSD is now close to its 20, 50, 100 and 200 day averages, located at 1.2036, 1.1932, 1.2016 and 1.1961 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 100 day average, which is 10.8 pips away. Volatility for EURUSD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. Or to simplify this another way, note that out of the past 10 days EURUSD’s price has gone down 6 them.