Euro: USD/EUR (EUR=X) consolidating after recent ascent

Euro: USD/EUR (EUR=X) consolidating after recent ascent

Euro: USD/EUR (EUR=X) consolidating after recent ascent

EUR/USD has been consolidating after Friday’s gains, with the pair in rebound mode from the critical $1.1301 support level. As mentioned yesterday, the 76.4% retracement level at $1.1299 points towards a potential that we are not rolling over after failing to create a new higher high. Instead, that could have been a retracement of the wider rally ($1.1215-$1.157), where a rally through $1.157 would signal the continuation of this uptrend.

Watch out for how the pair responds to the 61.8% and 76.4% Fibonacci resistance levels as a signal of whether we are in retracement mode or going to push up through $1.157.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.16.

The projected lower bound is: 1.13.

The projected closing price is: 1.15.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white 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 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 89.8149. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 57.34. 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 119 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 100.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.005 at 1.148. Volume was 26% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
1.143 1.150 1.140 1.148 178,608

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.14 1.14 1.16
Volatility: 8 8 8
Volume: 160,630 144,731 142,552

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% below its 200-period moving average and is in an downward trend. Volatility is low 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 7 periods.

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