Euro: USD/EUR (EUR=X) currently a bit overstretched

Euro: USD/EUR (EUR=X) currently a bit overstretched

Euro: USD/EUR (EUR=X) currently a bit overstretched

The Euro did very little during the day on Monday, as we continue to grind back and forth. The market is currently a bit overstretched, so I would not be surprised at all to see a bit of a pullback coming.

The Euro has been relatively quiet during the day on Monday, as we continue to see a lot of choppiness at the top of a huge move. The market has gone somewhat parabolic as of late and is now starting to approach the crucial 200-day EMA. That of course will attract a lot of attention, and therefore it would not surprise me at all to see this market give back some of the gains. Quite frankly, the market has been a bit overdone for a couple of days now, so at the very least it probably needs to take a bit of a break.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.13.

The projected lower bound is: 1.10.

The projected closing price is: 1.11.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 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 90.4398. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 65.58. 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 34 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 157.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.002 at 1.115. Volume was 8% below average (neutral) and Bollinger Bands were 37% wider than normal.

Open     High      Low     Close     Volume___
1.114 1.118 1.113 1.115 71,764
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.11 1.10 1.12
Volatility: 4 6 6
Volume: 81,089 78,597 104,928

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 0.5% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into EUR= (mildly bullish). Our trend forecasting oscillators are currently bullish on EUR= and have had this outlook for the last 6 periods.

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