Euro: USD/EUR (EUR=X) Continues To Consolidate

Euro: USD/EUR (EUR=X) Continues To Consolidate

Euro: USD/EUR (EUR=X) Continues To Consolidate

The Euro initially tried to rally during the trading session on Tuesday but found the 200 day EMA to be a bit too restrictive to reach to the upside for any significant amount of distance. We also broke down but haven’t necessarily broken any support levels either. The 1.11 handle it seems to be a bit of a magnet for price as it is essentially “fair value”, as the 1.10 level underneath has been massive support, while the 1.12 level above has been massive resistance. At this point, the market looks to be stuck, as traders find this area to be a bit of a magnet.

If we break above the 200 day EMA, then it’s likely we go looking towards 1.12 handle. However, if we break down below the 50 day EMA, then it’s likely that the market goes looking towards 1.10 level. Until then, it will be the usual choppiness that you see in the EUR/USD pair, as it is so heavily driven by high-frequency algorithmic trading. If you are looking for any type of real estate on a trade that you have running, this is not going to be the market for you. This is especially true right now, because we are not up against any major support or resistance that could turn the market around as well. That being said, those levels being broken would of course bring in more momentum and follow through on a trade, but I’m don’t see that happening anytime soon. At this point, the market seems to be lacking any significant momentum and therefore is probably better off left alone.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.12.

The projected lower bound is: 1.11.

The projected closing price is: 1.12.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white 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 57.7063. This is not an overbought or oversold reading. The last signal was a buy 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 54.20. 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. (ERROR: Function did not return a value)

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -30. This is not a topping or bottoming area. The last signal was a sell 9 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.002 at 1.115. Volume was 9% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
1.113 1.116 1.112 1.115 71,074
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.11 1.11 1.11
Volatility: 5 4 5
Volume: 66,250 58,497 78,265

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 0.1% above its 200-period moving average and is in an upward 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 bullish on EUR= and have had this outlook for the last 25 periods.

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