Euro: USD/EUR (EUR=X) continues to fall rather hard

Euro: USD/EUR (EUR=X) continues to fall rather hard

Euro: USD/EUR (EUR=X) continues to fall rather hard

The Euro has broken down significantly during the trading session on Tuesday, breaking below the 1.08 handle, and a scene that is very interesting due to the fact that there seems to be no bottom in this market right now. The 1.0750 level underneath should offer a bit of support though due to the fact that there was a massive gap formed there, and therefore it’s likely to see an area that could find support. That being said, it has been my target for some time but at this point it’s difficult to get involved and start selling the Euro at this point, because quite frankly it is a scenario where it would be chasing the trade.

Rallies at this point are interesting set up though, because I like the idea of shorting the Euro at higher levels, closer to the 1.09 level if we can get some bounce from there. Above there, the 1.10 level would also be important. Looking for some type of exhaustive daily candle will be the way going forward, but overall one would have to think that sooner or later there will be a massive short covering rally.

If the market breaks down below the gap, then it really becomes a question of whether or not the 1.05 level will offer some type of support. As far as buying the Euro is concerned, it’s almost impossible to do so, considering that the economic situation continues to favor the United States and it seems like the situation in the European Union is only getting worse. Ultimately, this is a market that is essentially a falling knife, and you don’t want to be trying to catch it.

Technical Indicarors

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.10.

The projected upper bound is: 1.09.

The projected lower bound is: 1.07.

The projected closing price is: 1.08.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 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 8.0000. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 21.13. 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 121 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 -111.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 30 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed unchanged at 1.079. Volume was 100% below average (consolidating) and Bollinger Bands were 87% wider than normal.

Open     High      Low     Close     Volume___
1.079 1.079 1.079 1.079 46
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.09 1.11 1.11
Volatility: 3 5 5
Volume: 64,589 59,344 72,322

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 2.8% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of EUR= (bearish). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 23 periods. Our momentum oscillator is currently indicating that EUR= is currently in an oversold condition.

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