USDEUR breaks back above 20-day moving average
US Dollar/Euro (USDEUR) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
USDEUR finished Thursday at 0.8542 gaining 28 pips (0.33%). Closing above Wednesday's high at 0.8532, the FX pair confirmed its breakout through the previous session high after trading up to 24 pips above it intraday.
Daily Candlestick Chart (USDEUR as at Oct 15, 2020):
Thursday's trading range has been 51 pips (0.6%), that's slightly above the last trading month's daily average range of 51 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDEUR.
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. The last time a Last Engulfing Top Pattern showed up on September 25th, USDEUR lost -0.27% on the following trading day.
The currency managed to close back above the 20-day moving average at 0.8520.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test September's nearby high at 0.8612.
Among the five 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 USD/EUR. Out of 87 times, USDEUR closed lower 56.32% 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 59.77% with an average market move of -0.22%.