EURUSD breaks below 50-day moving average
Euro/US Dollar (EURUSD) Technical Analysis Report for Jul 11, 2018
Moving lower for the 2nd day in a row, EURUSD finished Wednesday at 1.1674 losing 70 pips (-0.6%). Today's closing price of 1.1674 marks the lowest close since July 4th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 1.1690, the Euro confirms its breakout through the prior session's low having traded 24 pips below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Wednesday's trading range was 93 pips (0.79%), that's slightly below last trading month's daily average range of 96 pips. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average.
Prices are trading close to a key support level at 1.1652. Breaking below the key support level at 1.1727 today, it is now likely to act as resistance going forward. After having been unable to move above 1.1763 in the previous session, Fiber ran into sellers again around the same price level today, failing to move higher than 1.1759.
Although the pair is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory. EUR/USD broke below the 50-day moving average at 1.1728 today for the first time since April 20th.
With prices trading close to this year's low at 1.1508, downside momentum might accelerate should the currency break out to new lows for the year.
While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.