Euro: USD/EUR (EUR=X) Exchange Rate Flat, ‘Clock Ticking’ for US-China Trade Deal

Euro: USD/EUR (EUR=X) Exchange Rate Flat, ‘Clock Ticking’ for US-China Trade Deal

Euro: USD/EUR (EUR=X) Exchange Rate Flat, ‘Clock Ticking’ for US-China Trade Deal

The Euro US Dollar (EUR/USD) exchange rate held steady today, with the pairing currently trading around $1.106 after investors have become increasingly cautious due to a lack of progress on the US-China trade front.

Robert Carnell Chief Economist and Head of Research at ING Bank, Asia-Pacific, commented:

‘With the clock ticking until the Schedule 4B list of additional tariffs due on December 15 is implemented, there doesn’t seem to be much progress on an elusive trade deal… There are about 25/26 days until the tariffs on this list are imposed – smack-bang in the middle of the gift-giving season in the US. I wonder if markets will get a little more jittery once we hit December?’

This follows yesterday’s reports which indicated that mood in Beijing had turned ‘pessimistic’ over a US-China ‘phase one’ trade deal due to US President Donald Trump’s reluctance to roll back tariffs on Chinese goods.

The USD/EUR exchange rate remained unmoved, with investors unsure where to turn as the world’s two largest superpowers fail to make headway on a workable trade deal.

US Dollar (USD) traders will be awaiting today’s release of October’s US Building Permits figure, which is expected to ease from 1.391 million to 1.385 million, while US Housing Starts for the same month are expected to improve.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.12.

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 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 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 85.1450. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 52.74. 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 55 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 10. This is not a topping or bottoming area. The last signal was a buy 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.001 at 1.108. Volume was 15% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
1.107 1.108 1.106 1.108 65,946
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.10 1.10 1.12
Volatility: 3 6 6
Volume: 64,712 71,880 95,288

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 0.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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.

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