EURUSD rises to highest close since September 14th
Euro/US Dollar (EURUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
EURUSD ended the week 1.23% higher at 1.1861 after gaining 42 pips (0.36%) today. Today's close at 1.1861 marks the highest recorded closing price since September 14th. Trading up to 32 pips lower after the open, EUR/USD managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EURUSD as at Oct 23, 2020):
Friday's trading range has been 78 pips (0.66%), that's above the last trading month's daily average range of 68 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After trading as low as 1.1787 during the day, the currency found support at the 50-day moving average at 1.1798. The last time this happened on September 21st, EURUSD actually lost -0.54% on the following trading day. Prices are trading close to the key technical resistance level at 1.1883 (R1). After having been unable to move above 1.1867 in the prior session, the Euro ran into sellers again around the same price level today, failing to move higher than 1.1865.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1.1881 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for EUR/USD. Out of 84 times, EURUSD closed lower 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.33% with an average market move of -0.37%.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.33% and USDCHF closing -0.31% lower. On the flipside the best performers have been AUDUSD closing 0.31% higher and NZDUSD gaining 0.19%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been EURGBP surging 0.71% and EURSGD closing 0.47% higher. The worst performers of the day have been GBPPLN tanking -0.81% and GBPCHF closing -0.65% lower. Read more