Draghi Will Drive Euro Sub Par

Draghi Will Drive Euro Sub Par

EUR= closed down -0.001 at 1.101. Volume was 33% below average (neutral) and Bollinger Bands were 56% narrower than normal.

Open High Low Close Volume___
1.101 1.106 1.100 1.101 52,052

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.11 1.12 1.11
Volatility: 6 12 11
Volume: 70,963 81,453 69,137

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX EUR= is currently 0.7% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of EUR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 18 periods.

The head of the European Central Bank says the eurozone economy could be given a further dose of stimulus if Britain’s vote to leave the European Union starts to weigh on the region’s economic outlook.

Mario Draghi, , said that “over coming months with new information including staff projections, we will be better able to reassess macroeconomic conditions.”

He singled out last month’s British vote as a key risk. The vote could hurt trade between Britain and Europe as it could take years to hammer out a new trade deal.

Analysts say the ECB could opt later this year to extend its bond-buying stimulus program.

The central bank earlier left all its interest rates on hold at record lows.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.3461. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 26 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.12. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 114 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 15 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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