EUR/USD Down 184 Pips, Crosses 20, 50, 100 and 200 Day Moving Averages; in an Uptrend Over Past 30 Days

EUR/USD Price Recap

The choppiness in the recent daily price action of EUR/USD continues; to start today, it comes in at a price of 1.09962 US dollars, down 184 pips (1.64%) since yesterday. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 23.72% from the day before — and down 14.89% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/USD ended up ranking 36th for the day in terms of day-over-day price change. Here is a price chart of EUR/USD.

EUR/USD Technical Analysis

Notably, EUR/USD crossed below its 20, 50, 100 and 200 day moving averages 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 50 day average, which is 43.5 pips away. It should be noted, though, the 100 day simple moving average turned downwards, which may be a bearish sign. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 30 days EUR/USD’s price has gone down 15 them. We’re also seeing a bearish engulfing pattern form over the past two candles, which suggests the uptrend on the 30 day

A final note on correlations: in the recent most week, USD/CHF has been the pair most correlated with EUR/USD — a common occurrence, given the presence of USD in both currency pairs. As for pairs with the least correlation, look no further than USD/CHF for that answer.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURUSD, with 14 buy signals on our radar and 25 sell signals. This imputes a buy/sell ratio of 0.56, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price is in a downward channel..so will go up and reject the trendline and then continue its way down