EUR/USD Up 2 Pips Over Past Hour, in an Uptrend Over Past 90 Days; Nears 20 Day Moving Average

Hourly Update

(Last Updated October 5, 2020 16:25 GMT)

At the time of this writing, EURUSD’s rate is up 0.0002 (0.02%) from the hour prior. This is the 2nd hour in a row EURUSD has seen its price head up. As for the trend on the hourly timeframe, we see the clearest trend on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on EURUSD. Given that we see an uptrend on the 20 and 10 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 bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

EURUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURUSD entered today at 1.17138, down 30 pips (0.26%) from the day prior. Out of the 40 instruments in the Forex asset class, EURUSD ended up ranking 29th for the day in terms of price change. The price chart of EURUSD below illustrates.

EURUSD

EURUSD Technical Analysis

Notably, EURUSD is now close to its 20, 50 and 100 day averages, located at 1.1763, 1.18 and 1.1524 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 49.5 pips away. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 30 day timeframe. Or to simplify this another way, note that out of the past 14 days EURUSD’s price has gone down 9 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURUSD, with 7 buy signals on our radar and 24 sell signals. This imputes a buy/sell ratio of 0.29, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on fxempire.com; below is a short snippet from it to give you a taste.

The Euro rallied significantly on Monday again, as we continue to bounce back and forth between the trendline that has recently formed.