Euro: USD/EUR (EUR=X) All Over the Place

Euro: USD/EUR (EUR=X) All Over the Place

Euro: USD/EUR (EUR=X) All Over the Place

The Euro initially tried to rally during the week but found the 1.15 level to be too much. As we turned around to show signs of exhaustion, we break down below the 200 week EMA and it does certainly look market is trying to reach down towards the 1.10 level underneath. At this point, the market is carving out a wild range and at this point we now need to see what the US government does. Furthermore, we need to see what the Federal Reserve does as it will dictate where this pair goes next. In other words, you will probably have a hard time trading at from a longer-term standpoint until Wednesday when we get the statement from Jerome Powell.

At this point, the market has made a higher high, and if the market can make a higher low, this could be the beginning of a turnaround even though it has been so extraordinarily volatile. That being said, if the market breaks down below the 1.10 level then I think things will continue to struggle. Volatility suddenly has found its way in one of the most boring parents that I cover, so now the next couple of weeks will be crucial. I believe that the 1.10 level will be crucial for future direction and with the weekend coming, it’s difficult to imagine whether or not we can get it together and find a clear signal. That being said though, the next weekly candlestick will be the most important thing to pay attention to. There are clearly much more stable pairs out there to trade suddenly, but if we can hold that 1.10 level, it could be a very good sign.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.13.

The projected lower bound is: 1.10.

The projected closing price is: 1.12.

Candlesticks

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 23 white candles and 26 black candles for a net of 3 black candles.

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 24.5546. This is not an overbought or oversold reading. The last signal was a sell 4 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 55.45. 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 4 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 -12. This is not a topping or bottoming area. The last signal was a sell 3 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 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.008 at 1.118. Volume was 98% below average (consolidating) and Bollinger Bands were 201% wider than normal.

Open     High      Low     Close     Volume___
1.108 1.120 1.104 1.118 1,203
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.12 1.10 1.11
Volatility: 16 9 7
Volume: 112,712 80,637 73,583

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% 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 10 periods.

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