EURUSD closes lower for the 2nd day in a row
Euro/US Dollar (EURUSD) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURUSD ended the week 0.65% higher at 1.1469 after losing 31 pips (-0.27%) today. Trading 41 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on December 13, 2018, EURUSD lost -0.47% on the following trading day. Closing below Thursday's low at 1.1485, EUR/USD confirmed its breakout through the prior session low after trading up to 27 pips below it intraday.
Daily Candlestick Chart (EURUSD as at Jan 11, 2019):
Friday's trading range has been 83 pips (0.72%), that's slightly below the last trading month's daily average range of 87 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURUSD.
Prices are trading close to the key technical support level at 1.1443 (S1). The forex pair closed back below the 100-day moving average at 1.1478.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/USD. Out of 628 times, EURUSD closed higher 52.07% of the time on the next trading day after the market condition occurred.
With five out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.71% and NZDUSD closing 0.69% higher. On the flipside the worst performer has been USDCHF closing -0.09% lower. Looking at the Minor FX Pairs and Crosses, the winners of the day have been NZDCAD surging 0.98% and GBPCAD closing 0.97% higher. The worst performers of the day have been EURNZD tanking -1.04% and EURGBP closing -0.99% lower. Read more