Euro: USD/EUR (EUR=X) looking towards the 1.1750 level

Euro: USD/EUR (EUR=X) looking towards the 1.1750 level

Euro: USD/EUR (EUR=X) looking towards the 1.1750 level

The Euro rallied significantly during the trading session on Friday, breaking above the shooting star that formed on Wednesday which of course is a very bullish sign. At this point, the market may continue to go higher, but there’s obviously a lot of resistance just above.

If we do break to the upside, I think that the market will probably go looking towards the 1.1750 level, followed by the 1.18 level. Pullback should find support and the 1.15 handle, if we can even get down there. The US dollar sold off quite drastically over the course of the week, it looks like people are starting to worry less about the Turkish situation spreading into contagion of European banks, at least for the time being. Because of this, I think that we may see a bit of a continuation of the recovery.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.18.

The projected lower bound is: 1.15.

The projected closing price is: 1.17.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white 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 83.5407. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 59.21. 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 7 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.006 at 1.168. Volume was 12% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
1.163 1.169 1.159 1.168 127,958

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

Moving Averages: 10-period 50-period 200-period
Close: 1.15 1.16 1.20
Volatility: 9 8 9
Volume: 142,873 147,344 133,121

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 2.4% below its 200-period moving average and is in an downward 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 bearish on EUR= and have had this outlook for the last 15 periods.

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