Euro: USD/EUR (EUR=X) in the red on account of the firmer US dollar

Euro: USD/EUR (EUR=X) in the red on account of the firmer US dollar

Euro: USD/EUR (EUR=X) in the red on account of the firmer US dollar

EUR/USD is in the red on account of the firmer US dollar. Germany posted an impressive jump in inflation but the currency pair remained unfazed by the news. The inflation rate on an annual basis jumped to 2.2% in September – up from 1.9%. The jump in the cost of living suggests that demand is strong and that bodes well for the German economy.

Overall, the bias in prices is: Sideways.

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

The projected upper bound is: 1.18.

The projected lower bound is: 1.15.

The projected closing price is: 1.16.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 16.3745. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 21 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 48.20. 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 31 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 -73. This is not a topping or bottoming area. The last signal was a sell 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed unchanged at 1.164. Volume was 100% below average (consolidating) and Bollinger Bands were 19% narrower than normal.

Open High Low Close Volume___
1.164 1.164 1.163 1.164 220

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: 127,714 135,972 134,998

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 2.5% 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 23 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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