EURUSD breaks below Thursday's low
Euro/US Dollar (EURUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURUSD finished the week -1.05% lower at 1.0831 after losing 9 pips (-0.08%) today. Today's close at 1.0831 marks the lowest recorded closing price since April 21, 2017. Trading 20 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 January 21st, EURUSD actually gained 0.11% on the following trading day. Closing below Thursday's low at 1.0834, the pair confirmed its breakout through the previous session low after trading up to 7 pips below it intraday.
Daily Candlestick Chart (EURUSD as at Feb 14, 2020):
Friday's trading range has been 34 pips (0.31%), that's below the last trading month's daily average range of 44 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.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 1.0997.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/USD. Out of 107 times, EURUSD closed higher 53.27% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and AUDUSD closing -0.07% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more