EURUSD Down 0 Pips in Last Hour, Makes Big Move Relative to Past Month; in an Uptrend Over Past 90 Days

Hourly Update

(Last Updated September 23, 2020 0:16 GMT)

At the moment, EURUSD’s rate is down 0 pips (0%) from the hour prior. EURUSD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists 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 bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

EURUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURUSD is down 66 pips (0.56%) since the day prior (opening today near 1.17706), marking the 2nd consecutive day a decline has happened. Relative to other instruments in the Forex asset class, EURUSD ranked 31st the day prior in terms of percentage price change. Let’s take a look at price chart of EURUSD.

EURUSD

EURUSD Technical Analysis

The first thing we should note is that 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. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone down 9 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURUSD, with 4 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 0.36, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci, head and shoulders and moving average technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Retest the 1.17 zone and confluence with the .618 fibonacci retracement. I expect the pair will touch the 1.25 as soon as the end of the year, maybe before. Take care and good luck!


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