Brexit Effecting The Euro – Theresa May To Remove EU Citizens From UK

Brexit Effecting The Euro – Theresa May To Remove EU Citizens From UK

The exchange rate has showed signs of recovery as it jumped to €1.138 today.

It climbed from €1.133 yesterday and sits comfortably above a weekly low of €1.131.

The pound has risen after Theresa May attended an EU summit dinner last night in Brussels.

Despite the event remaining separate from the formal Brexit negotiations, there was one revelation from the Prime Minister.

“While the dinner wasn’t officially a chance for negotiations to progress, May did lay some of her cards on the table. 

“The PM announced that three million EU nationals currently residing in the UK would be allowed to remain in the nation post-Brexit as long as the same could be said for one million Brits living in European nations.”

Though rising slightly against the euro, the pound didn’t have the desired boost for investors.

Ms Parsons said: “The news had little impact on the pound during the Asian session, with GBP/EUR hanging around the €1.137 level.”

Technical Analysis

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 1.11.

The projected upper bound is: 1.15.

The projected lower bound is: 1.12.

The projected closing price is: 1.14.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

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 72.8183. This is not an overbought or oversold reading. The last signal was a sell 0 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 62.21. 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 2 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 70. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.136. Volume was 65% below average (consolidating) and Bollinger Bands were 12% wider than normal.

Open  High   Low   Close  Volume
1.136   1.138  1.133  1.136  38,268

Technical Outlook
Short Term:                Overbought
Intermediate Term:  Bullish
Long Term:                 Bullish

Moving Averages: 10-period   50-period   200-period
Close:                       1.13              1.11              1.08
Volatility:                10                 9                  9
Volume:                   104,578      110,091       117,990

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 5.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of EUR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on EUR= and have had this outlook for the last 4 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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