Euro: USD/EUR (EUR=X) holds up amid recent downturn

Euro: USD/EUR (EUR=X) holds up amid recent downturn

Euro: USD/EUR (EUR=X) holds up amid recent downturn

EUR/USD has been selling off sharply throughout the latter part of the past week, with the pair moving towards the crucial $1.1526 support level.

The wider trend points towards a recent inverse head and shoulders formation in play, but should this fall see the pair drop below $1.1526 support, it would largely negate that pattern. With the price failing to break below Friday’s lows thus far, there is a chance that we could see the pair start to regain ground. Ultimately, a break below $1.1526 would signal a bearish wider view coming into play. Until that happens, watch for a potential recovery from here, with a break above $1.1629 adding greater confidence to that upside potential.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.17.

The projected upper bound is: 1.17.

The projected lower bound is: 1.14.

The projected closing price is: 1.16.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 27 white candles and 23 black candles for a net of 4 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 10.1247. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 23 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 43.19. 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 33 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.158. Volume was 99% below average (consolidating) and Bollinger Bands were 14% narrower than normal.

Open High Low Close Volume___
1.158 1.158 1.158 1.158 1,485

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.17 1.16 1.19
Volatility: 8 8 9
Volume: 126,758 135,488 135,986

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 3.0% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 25 periods.

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