USDEUR breaks back below 50-day moving average
US Dollar/Euro (USDEUR) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, USDEUR ended Tuesday at 0.8459 losing 37 pips (-0.44%). Closing below Monday's low at 0.8479, the FX pair confirmed its breakout through the prior session low after trading up to 34 pips below it intraday.
Daily Candlestick Chart (USDEUR as at Oct 20, 2020):
Tuesday's trading range has been 58 pips (0.68%), that's above the last trading month's daily average range of 49 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDEUR.
One bearish candlestick pattern matches today's price action, the Black Candle.
The forex pair closed back below the 50-day moving average at 0.8478 for the first time since October 12th. When this moving average was crossed below the last time on October 9th, USDEUR actually gained 0.12% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for USD/EUR. Out of 115 times, USDEUR closed higher 57.39% of the time on the next trading day after the market condition occurred.