USDEUR dominated by bulls lifting the market higher throughout the day
US Dollar/Euro (USDEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDEUR finished the week -0.75% lower at 0.9173 after gaining 41 pips (0.45%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.9143, the currency confirmed its breakout through the previous session high after trading up to 44 pips above it intraday.
Daily Candlestick Chart (USDEUR as at May 22, 2020):
Friday's trading range has been 59 pips (0.65%), that's slightly below the last trading month's daily average range of 65 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 slightly lower than usual for USDEUR.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 6th, USDEUR actually lost -0.33% on the following trading day.
Buyers managed to take out the key technical resistance level at 0.9152 (now S1), which is likely to act as support going forward.
While the Dollar is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test April's nearby low at 0.9059.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/EUR. Out of 637 times, USDEUR closed lower 50.55% of the time on the next trading day after the market condition occurred.