Home FX Euro Euro: USD/EUR (EUR=X) demand for risky assets remains quite cautious

Euro: USD/EUR (EUR=X) demand for risky assets remains quite cautious

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Euro: USD/EUR (EUR=X) demand for risky assets remains quite cautious

Because of the Chinese coronavirus story, the demand for risky assets remains quite cautious.

The January statistics on the employment market published last Friday by the USA were in favor of the USD. For example, the Non-Farm Employment Change showed 225K after being 147K and against the expected reading of 163K. The Unemployment Rate got a little bit worse as it increased up to 3.6% after being 3.5% the month before.

The Average Hourly Earnings added 0.2% m/m, which is a bit lower than expected (+0.3% m/m), but better than in December (+0.1% m/m).

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.11.

The projected upper bound is: 1.10.

The projected lower bound is: 1.08.

The projected closing price is: 1.09.

Candlesticks

During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 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 2.2025. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 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 29.00. 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. (ERROR: Function did not return a value)

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -177.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 24 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.091. Volume was 90% below average (consolidating) and Bollinger Bands were 36% wider than normal.

Open     High      Low     Close     Volume___
1.091 1.091 1.091 1.091 6,562
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.10 1.11 1.11
Volatility: 5 5 5
Volume: 63,981 57,534 73,622

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 1.9% 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 moderate flows of volume out of EUR= (mildly bearish). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 17 periods. Our momentum oscillator is currently indicating that EUR= is currently in an oversold condition.

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