USDEUR finds buyers again around 0.8428

US Dollar/Euro (USDEUR) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team


USDEUR falls to lowest close since September 14th
USDEUR closes below its opening price unable to hold early session gains
USDEUR fails to close above 50-day moving average
USDEUR finds buyers again around 0.8428
USDEUR closes within previous day's range


USDEUR finished the week -1.22% lower at 0.8431 after losing 30 pips (-0.35%) today. Today's close at 0.8431 marks the lowest recorded closing price since September 14th. Trading 23 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (USDEUR as at Oct 23, 2020):

Daily technical analysis candlestick chart for US Dollar/Euro (USDEUR) as at Oct 23, 2020

Friday's trading range has been 56 pips (0.66%), that's above the last trading month's daily average range of 49 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 USDEUR.

Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.

Prices are trading close to the key technical support level at 0.8415 (S1). After spiking up to 0.8484 during the day, the pair found resistance at the 50-day moving average at 0.8476. The last time this happened on September 21st, USDEUR actually gained 0.54% on the following trading day. After having been unable to move lower than 0.8427 in the prior session, the forex pair found buyers again around the same price level today at 0.8428.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Selling could accelerate should prices move below the nearby swing low at 0.8417 where further sell stops might get activated. With prices trading close to this year's low at 0.8326, downside momentum could speed up should the Dollar break out to new lows for the year.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for USD/EUR. Out of 94 times, USDEUR closed higher 54.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.45% with an average market move of 0.32%.

Market Conditions for USDEUR as at Oct 23, 2020

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