Euro: USD/EUR (EUR=X) continues to see the 1.12 level offer more selling
The Euro rallied a bit during the trading session on Monday to kick the week off, but then rolled over near the 1.12 handle. This is an area where you would expect to see trouble, because it is such a large, round, psychologically significant figure and a place where we have seen both support and resistance in the past.
That being said, the market is struggling and now it looks as if the Euro could roll over in general, and then it could send this market down to a couple of different places. The initial target I believe would be the 1.11 handle, which has been tested previously. If we can break down below that level, then it’s very likely that we could go down to the 1.10 level underneath, which is even more important from a longer-term standpoint. Because of this, I think that is our eventual target, but it’s going to take a while to get there as this pair tends to be extraordinarily choppy under the best of circumstances.
Notice that the 50 day EMA, pictured in red on the chart, has offered perfect resistance the last couple of rallies, so I think it should continue to be massive resistance. If we can break above there, then we could start to talk about a recovery by the Euro but right now that looks to be far away. Selling rallies continues to work.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.13.
The projected upper bound is: 1.13.
The projected lower bound is: 1.11.
The projected closing price is: 1.12.
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 24 white candles and 25 black candles for a net of 1 black candles.
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 47.7328. This is not an overbought or oversold reading. 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 45.86. 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 187 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 -30. This is not a topping or bottoming area. The last signal was a buy 5 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed unchanged at 1.120. Volume was 26% below average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
1.117 1.121 1.116 1.120 101,122
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.12 1.13 1.14
Volatility: 5 6 7
Volume: 107,866 128,389 138,291
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 1.8% 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 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 9 periods.