Euro: USD/EUR (EUR=X) forms bullish flag pattern

Euro: USD/EUR (EUR=X) forms bullish flag pattern

Euro: USD/EUR (EUR=X) forms bullish flag pattern

The Euro-to-Dollar exchange rate is trading at around 1.1368 at the start of the new trading week, virtually unchanged from the week before. However, studies of the charts suggest the exchange rate will probably rise in the days to come.

The Euro-to-Dollar exchange rate is trading at around 1.1368 at the start of the new trading week, virtually unchanged from the week before. However, studies of the charts suggest the exchange rate will probably rise in the days to come.

The expectation is for the flag to break to the upside and rise the same distance again as the pole. This indicates a probable move up to the key January highs at 1.1575. In the short-term, however, it might only get as far as the 1.1495-1.1500 level before hitting a temporary ceiling.

A break above the 1.1412 highs would probably green light the bull-flag breakout higher and the extension up to the aforesaid target.

The RSI momentum indicator is a little bit weak but not enough to negate the bullish forecast.

We use the 4-hour chart for the short-term outlook which includes the next five trading days.

The daily chart shows the same bull flag as highlighted on the 4hr chart, with the second longer-term target at the January highs.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.13.

The projected upper bound is: 1.15.

The projected lower bound is: 1.13.

The projected closing price is: 1.14.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white 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 48.7094. This is not an overbought or oversold reading. The last signal was a sell 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 60.94. 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 227 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 61. This is not a topping or bottoming area. The last signal was a sell 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.001 at 1.136. Volume was 99% below average (consolidating) and Bollinger Bands were 33% wider than normal.

Open High Low Close Volume___
1.137 1.137 1.135 1.136 1,417

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 1.13 1.12 1.13
Volatility: 6 5 7
Volume: 61,019 91,432 128,163

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 0.2% above its 200-period moving average and is in an upward 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 bullish on EUR= and have had this outlook for the last 19 periods.

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