Euro: USD/EUR (EUR=X) is expected to respond positively irrespective of the outcome of the Brexit vote
The EUR/USD is expected to respond positively irrespective of the outcome of the Brexit vote today. Currently, there are three possible outcomes.
- That UK MPs reject May’s proposed deal that is already agreed with the EU, resulting in a No-deal Brexit on March 29.
- That UK MPs reject May’s deal but then agree for an extension of the deadline such that negotiations continue after March 29 (the likely outcome).
- That UK MPs accept May’s proposed Brexit deal that will set up another course for implementation of new policies.
In addition, the US is also reporting new inflation data today, which is expected to be moderate based on forecasts. This is expected to have minimal impact on the greenback. However, after China’s latest move to ground Boeing 737 Max planes, this is expected to have a mild negative impact on ongoing negotiations with the U.S. As such, it could affect the greenback as well.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.14.
The projected upper bound is: 1.14.
The projected lower bound is: 1.11.
The projected closing price is: 1.13.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black 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 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 43.0908. This is not an overbought or oversold reading. The last signal was a buy 1 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 43.36. 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 148 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 -71. This is not a topping or bottoming area. The last signal was a buy 0 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.003 at 1.127. Volume was 48% below average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
1.125 1.129 1.124 1.127 75,288
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.13 1.14 1.15
Volatility: 7 7 8
Volume: 133,468 145,821 143,353
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 1.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.