EUR/USD Up 1 Pips Over Past Hour, Price Base in Formation Over Past 30 Days; Eyes 20 and 50 Day Averages

Hourly Update

(Last Updated November 12, 2020 1:31 GMT)

Currently, EURUSD’s rate is up 0.0001 (0.01%) from the hour prior. EURUSD has seen its price go up 4 out of the past 5 hours, thus creating some compelling opportunities for bulls. As for the trend on the hourly timeframe, we see the clearest trend on the 100 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on EURUSD. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

EURUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURUSD entered today at 1.17771, down 36 pips (0.3%) from the previous day. Out of the 40 instruments in the Forex asset class, EURUSD ended up ranking 34th for the day in terms of price change. Here is a price chart of EURUSD.

EURUSD

EURUSD Technical Analysis

The first thing we should note is that EURUSD is now close to its 20, 50 and 100 day averages, located at 1.1769, 1.177 and 1.1694 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 50 day average, which is 7.3 pips away. Also of note is that on a 30 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 15 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURUSD, with 18 buy signals on our radar and 38 sell signals. This imputes a buy/sell ratio of 0.47, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel, relative strength index 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.

* Signals are tested successfully for 3.5 years with a steady win rate year on year until now….- 2 or more points (> = 2), the entry conditions are met- The entry point for the highest winning rate: when the price adjusts to the Upper / Lower line, the order price is at the closing price of the adjustment candle….———————————— Maximum risk / reward winning ratio: 1 / 1.05- Stoploss: Calculated from the entry point + – actual fluctuation with the formula ATR (20) * risk ratio (risk).