Euro: USD/EUR (EUR=X) Continues To Test Same Area
The Euro has rallied again during trading in early hours on Wednesday but has given back some of the gains. We continue to see a lot of resistance near the 1.0850 level, so that is obviously the next hurdle for the bullish traders out there to try to overcome. We cannot seem to be able to close above that level on a daily chart, so it’s not until then that I would be looking for a pop of any significance. As the United States is passing a stimulus measure, the question at this point is whether or not that’s going to favor the US dollar or not? Correlations have been smashed as of late so it’s a bit of a gas at this point. Nonetheless, it certainly looks as if there is a lot of stubborn resistance above that is certainly something that you should be paying attention to.
Even if we do break above the 1.0850 level on a daily close, it seems very unlikely that we will be able to break above the 1.10 level easily. That would be the next area I would anticipate seeing sellers coming into the marketplace, so keep that in mind. I believe that the Euro is weaker against the US dollar for good reasons from a fundamental standpoint, as the European Union not only has to worry about the virus but quite frankly is a basket case financially anyway. At this point, I anticipate that we continue to the same thing that we have been able to do for some time now: fade each rally as it occurs.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.10.
The projected upper bound is: 1.11.
The projected lower bound is: 1.07.
The projected closing price is: 1.09.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 64.4485. This is not an overbought or oversold reading. The last signal was a buy 1 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 46.82. 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 sell 12 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 -36. This is not a topping or bottoming area. The last signal was a buy 2 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 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.004 at 1.092. Volume was 60% below average (consolidating) and Bollinger Bands were 175% wider than normal.
Open High Low Close Volume___
1.088 1.093 1.087 1.092 30,668
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.09 1.10 1.11
Volatility: 18 12 8
Volume: 133,572 92,931 76,637
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 1.5% 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 4 periods.