Euro: USD/EUR (EUR=X) continues to decline
In line with expectation, EUR extended its decline as it hit a ‘fresh’ low of 1.1328 yesterday. As highlighted on Monday (13 Aug, spot at 1.1400), there is “room for further weakness in the coming days” and the next level to focus on is at 1.1285 followed by 1.1185.
The former level appears to be within reach sometime this week. On the upside, the ‘stop-loss’ level is adjusted lower to 1.1460 from 1.1500. Shorter-term, 1.1430 is already a strong resistance level.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.17.
The projected upper bound is: 1.15.
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 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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.
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 12.7759. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 6 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 27.96. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 56 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 10 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.000 at 1.135. Volume was 94% below average (consolidating) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
1.134 1.136 1.134 1.135 9,151
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.15 1.16 1.20
Volatility: 8 9 9
Volume: 126,428 146,790 131,434
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 5.2% below its 200-period moving average and is in an downward trend. Volatility is 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 8 periods. Our momentum oscillator is currently indicating that EUR= is currently in an oversold condition.
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