EURUSD Up 1 Pips Over Past Hour, in an Uptrend Over Past 90 Days; Eyes 20 Day Average

Hourly Update

(Last Updated September 16, 2020 23:17 GMT)

At the moment, EURUSD’s rate is up 1 pips (0.01%) from the hour prior. This is the 2nd consecutive hour EURUSD has seen its price head up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists 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 downtrend 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 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)

After 4 up days, EURUSD snaps its streak, falling 17 pips (-0.14%) over the past day to close at an exchange rate of 1.18455. Relative to other instruments in the Forex asset class, EURUSD ranked 30th yesterday in terms of percentage price change. Below is a price chart of EURUSD.

EURUSD

EURUSD Technical Analysis

Notably, EURUSD is now close to its 20 and 50 day moving averages, which may act as price barrier for the asset. 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. Or to simplify this another way, note that out of the past 30 days EURUSD’s price has gone up 16 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURUSD, with 8 buy signals on our radar and 24 sell signals. This imputes a buy/sell ratio of 0.33, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Looking at my chart you can watch this triangle-formation forming with the blue trendlines, furthermore, you can watch the previously established downside impulse and the EMA resistance within the triangle….Besides that the chart is building this wave-count currently formed the wave B of the major wave count and setting up to form the next wave C, when this wave-count finishes fully it can result into a bearish outcome providing heavy volatility to the downside, for now, this is a more likely scenario than the bullish case….Considering the more likely bearish scenario, this mechanism can be traded either aggressively with immediate entry or conservative with entry after confirmation, although the aggressive entry is also possible here the conservative one will be much smarter as it will provide the best set up to enter, when EURUSD has reached the downside targets it has to be elevated if it follows up with bearishness or manages to somewhat reverse in the structure, till then the main direction is more suggestible to the downside.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram