USDEUR rises to highest close since April 21, 2017
US Dollar/Euro (USDEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, USDEUR finished the week 1.06% higher at 0.9233 after gaining 8 pips (0.09%) today. Today's close at 0.9233 marks the highest recorded closing price since April 21, 2017. Trading up to 17 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 21st, USDEUR actually lost -0.11% on the following trading day. Closing above Thursday's high at 0.9230, the currency confirmed its breakout through the previous session high after trading up to 6 pips above it intraday.
Daily Candlestick Chart (USDEUR as at Feb 14, 2020):
Friday's trading range has been 29 pips (0.31%), that's below the last trading month's daily average range of 37 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for USDEUR.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop 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 down towards the center of the Bollinger Bands at 0.9094.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/EUR. Out of 158 times, USDEUR closed lower 52.53% of the time on the next trading day after the market condition occurred.