EURUSD Down 10 Pips Over Past Hour, Breaks Above 20 Day Average; in a Downtrend Over Past 30 Days

Hourly Update

(Last Updated October 6, 2020 15:16 GMT)

At the moment, EURUSD’s rate is down -10 pips (-0.08%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as EURUSD has now gone down 8 of the past 10 hours. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Most noteworthy in the world of moving averages on the hourly chart is that the 20 hour moving average has been crossed, with price now being below it. 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)

The choppiness in the recent daily price action of EURUSD continues; to start today, it came in at a price of 1.1781, up 67 pips (0.57%) since the day prior. Compared to its peers in the Forex, EURUSD gave its buyers a return that ranked 8th in terms of percentage change since the day prior. Below is a price chart of EURUSD.

EURUSD

EURUSD Technical Analysis

First things first: EURUSD crossed above its 20 day moving average 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 20 day average, which is 19.2 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 8 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURUSD, with 25 buy signals on our radar and 24 sell signals. This imputes a buy/sell ratio of 1.04, which is neutral. As for the rationale, technical traders seem to be citing the appearance of fibonacci and relative strength index technical patterns. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

The Relative Strength Index (RSI) indicates a further appreciation in EUR/USD as the indicator breaks out of the downward trend carried over from late July.