Euro: USD/EUR (EUR=X) Breakdown Set to Continue
EUR/USD Technical Highlights: Breach of support last week keeps focus lower Firm recapture of support needed to negate bearish bias Trend-line from Dec ’16 and August low could be targeted next week For the intermediate-term fundamental and technical outlook, check out the
The euro broke big support just above 11500 on Wednesday, then spent the remaining two days of the week testing the break. Friday, post NFPs, there was a second attempt into two days to recapture the broken threshold but to no avail.
This sets EUR/USD up for further losses in the week ahead. First up as support is last week’s low at 11463, but buyers are seen as putting up much of a fight there. That will likely be reserved for a more important line of support extending higher since December 2016.
EUR/USD Daily Chart Euro Sentiment As per , traders are marginally long EUR/USD with 57% holding a bullish position. As a contrarian signal this is viewed as bearish.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.16.
The projected upper bound is: 1.17.
The projected lower bound is: 1.14.
The projected closing price is: 1.15.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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.
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 35.8027. This is not an overbought or oversold reading. The last signal was a buy 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 41.19. 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 37 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 -80. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.000 at 1.152. Volume was 99% below average (consolidating) and Bollinger Bands were 16% wider than normal.
Open High Low Close Volume___
1.152 1.153 1.151 1.152 1,707
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.16 1.16 1.19
Volatility: 7 8 9
Volume: 119,525 134,275 137,109
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 3.4% below its 200-period moving average and is in an downward 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 bearish on EUR= and have had this outlook for the last 3 periods.
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