There is a major support level at 1.05, and a lesser support level at .95. Those are the only two barriers from a price action perspective on the monthly chart standing between here and .85. It is also worth noting that we have been in a pattern of lower highs since the 2008 financial crisis, so the momentum to .85 has been building for some time.
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.
Out of the 40 instruments in the forex asset class, eur/usd ended up ranking 36th for the day in terms of day-over-day price change.
The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 37.2% from the day prior, and up 334.96% from the same day the week before.
This imputes a buy/sell ratio of 1.09, which is neutral.
As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern.
Or to simplify this another way, note that out of the past 30 days eur/usd’s price has gone up 15 them.
For additional context, note that price has gone up 10 out of the past 14 days.
The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 18.06% from the day prior, but up 194.52% from the same day the week before.
As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern.