Euro: USD/EUR (EUR=X) Eurozone Q2 GDP reported slightly higher than the consensus estimate of around 1.0%
Healthy 1.1158 resistance handle continued to restrict the pair’s upside even today. The EUR/USD pair had remained almost muted since July 23. However, the bulls attempted to test the 1.1158 resistance in the European trading session. Anyhow, the aforementioned resistance, in combination with a major counter trendline pushed the pair downwards.
Some crucial Eurozone-specific macroeconomic data came out on Wednesday morning. Few of them remained in-line with the market hopes, and few pleased the buyers while few made a disappointing data release. Notably, the Eurozone Q2 GDP reported slightly higher than the consensus estimate of around 1.0%. Needless to say, the Eurozone July YoY CPI Core reported 1.0% over 0.9% forecasts. Meanwhile, the Italian Q2 GDP recorded higher than the negative market expectations. Also, post-Fed rate cut release, the Fiber dropped to 1.1082 level, last touched in 2017.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.12.
The projected upper bound is: 1.12.
The projected lower bound is: 1.10.
The projected closing price is: 1.11.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 31.5625. This is not an overbought or oversold reading. The last signal was a buy 2 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 31.86. 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 249 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 -120.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 21 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.009 at 1.107. Volume was 13% below average (neutral) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume___
1.115 1.116 1.106 1.107 81,826
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.12 1.12 1.13
Volatility: 7 6 7
Volume: 76,197 78,510 122,482
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 2.1% 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 16 periods.
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