Euro: USD/EUR (EUR=X) continuation of the overall choppy and difficult situation

Euro: USD/EUR (EUR=X) continuation of the overall choppy and difficult situation

Euro: USD/EUR (EUR=X) continuation of the overall choppy and difficult situation

The Euro initially rallied during the trading session on Monday and then ended up breaking below the 1.10 EUR level. By doing so, it shows a continuation of the overall choppy and difficult situation.

The Euro initially tried to rally during the trading session on Monday, but then broke down significantly to slice below the 1.10 EUR level. At this point, it’s likely that there might be a little bit of support, but at the longer-term focus you would see very likely more negativity.

At this point, the 50 day EMA which is pictured in red on the chart above should continue to send this market lower. All things being equal, the Euro should continue to suffer at the hands of the US dollar due to the fact that the economic figures coming out of the European Union on Monday were poor to say the least. Both French and German PMI numbers were lower than anticipated, and therefore it’s likely that the Euro will continue to try to grind through the support of area.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1.11.

The projected lower bound is: 1.09.

The projected closing price is: 1.10.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 19 white candles and 29 black candles for a net of 10 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 25.8461. This is not an overbought or oversold reading. The last signal was a buy 14 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 41.73. 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 15 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 -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 14 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.099. Volume was 100% below average (consolidating) and Bollinger Bands were 38% narrower than normal.

Open     High      Low     Close     Volume___
1.099 1.099 1.099 1.099 216
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.10 1.11 1.12
Volatility: 7 6 6
Volume: 66,767 80,884 109,139

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 2.3% 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 55 periods.

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