Euro: USD/EUR (EUR=X) charts give off multiple signs of reversal higher
The Euro-to-Dollar rate may have formed a major bottom on the charts from which it would be likely to reverse and trend higher, according to analysts at Faraday Research, who’re telling clients the down-move in the exchange rate could now be over.
Euro-to-Dollar rate charts are giving off no less than four separate signals that suggest the single currency could be on the cust of a trend change and significant move higher, Faraday Research argues in a recent note to clients.
The first signal is a double-bottom reversal pattern that’s formed since the eschange rate bounced twice in short succession off the 2019 low located near to 1.1110 during the course of April and May.
Double-bottom patterns are quite reliable reversal signals. They look like the capital letter ‘W’ and when fully formed at the bottom of a downtrend, are usually good indicators that prices are soon going to start moving higher.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.14.
The projected lower bound is: 1.12.
The projected closing price is: 1.13.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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 64.1309. This is not an overbought or oversold reading. The last signal was a sell 1 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 58.54. 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 215 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 62. This is not a topping or bottoming area. The last signal was a sell 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 buy 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.001 at 1.129. Volume was 98% below average (consolidating) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume___
1.128 1.129 1.128 1.129 2,694
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.13 1.12 1.14
Volatility: 6 5 7
Volume: 80,547 102,495 132,177
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 0.6% below 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 7 periods.