The Euro US Dollar (EUR/USD) exchange rate is advancing on Tuesday, extending gains for a second day. The pair settled on Monday +0.3% at US$1.2143 after having eased back from a session high and fresh year to date high of US$1.2177. At 07:15 UTC, EUR/USD trades +0.1% at US$1.2161.
The mood is the market is mixed as investors battle vaccine optimism against surging covid cases and tighter lockdown restrictions on both sides of the Atlantic.
Germany is re-entering a national lockdown over Christmas and the Netherlands is also introducing its strictest rules yet in an attempt to stem the spread of the virus.
Data is the previous session supported the common currency. Eurozone industrial production continued to strengthen in October despite a resurgence of covid. Output rise 2.1% in October compared to the previous month, ahead of the 2% forecast and a significant improvement on September’s upwardly revised 0.1%. The was the six straight month that industrial production expanded, highlighting the growing divergence with the service sector.
Looking ahead French and Italian inflation could attract some attention, although sentiment is expected to be the biggest driving force across the session.
The US Dollar remains near multi year lows in the early European session as there is little new newsflow.
Covid cases continue to soar in the US and lockdown restrictions are also tightening. However, hopes surrounding US additional fiscal stimulus is keeping the mood in the market buoyant. Congress continues to discuss a rescue package to help businesses and households struggling to make ends meet.
Congress is expected to divide the $908 billion rescue package into two in the hpe that it will be easier to pass through Congress. Investors are awaiting updates, particularly given that Congress breaks for Christmas at the end of the week.
Euro/US Dollar Exchange Rate
Today’s Forex Rates
EUR/USD FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.19.
The projected upper bound is: 1.23.
The projected lower bound is: 1.20.
The projected closing price is: 1.22.
A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.9532. This is not an overbought or oversold reading. The last signal was a sell 7 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 69.20. 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 6 period(s) ago.
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.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.000 at 1.215. Volume was 87% below average (consolidating) and Bollinger Bands were 67% wider than normal.
Open High Low Close Volume 1.215 1.216 1.214 1.215 13,978
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.21 1.19 1.15 Volatility: 4 7 9 Volume: 108,795 106,401 110,455
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.
FOREX EUR= is currently 6.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on EUR= and have had this outlook for the last 28 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.