Euro: USD/EUR (EUR=X) appears that the pair is attempting yet another bottoming effort

Euro: USD/EUR (EUR=X) appears that the pair is attempting yet another bottoming effort

Euro: USD/EUR (EUR=X) appears that the pair is attempting yet another bottoming effort

Several bottoming efforts in recent months have failed to produce a meaningful turn in EURUSD: the bullish falling wedge entering 2019; the bullish falling wedge between January and May; and the rising channel between May and July. Despite EURUSD hitting a fresh yearly low on August 1, it now appears that the pair is attempting yet another bottoming effort as it has now broken the downtrend from the June and July swing highs.

EURUSD price action has had trouble establishing a topside move, despite four consecutive closes above the June and July downtrend, price has yet to close through the July 9/July 17 swing lows around 1.1203. To provide some credit for a bullish turn, price is holding above the daily 8-, 13-, and 21-EMA envelope. Similarly, Slow Stochastics have extended their advance above the neutral line towards overbought condition. Daily MACD remains in bearish territory, but it has been trending higher for four consecutive days.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.12.

The projected upper bound is: 1.13.

The projected lower bound is: 1.11.

The projected closing price is: 1.12.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 58.0096. This is not an overbought or oversold reading. The last signal was a sell 2 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 51.08. 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 buy 257 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 82. This is not a topping or bottoming area. The last signal was a buy 6 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 unchanged at 1.120. Volume was 100% below average (consolidating) and Bollinger Bands were 2% narrower than normal.

Open     High      Low     Close     Volume___
1.120 1.120 1.119 1.120 142
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.12 1.12 1.13
Volatility: 7 6 7
Volume: 86,770 76,603 120,412

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 0.9% 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 24 periods.

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