Euro: USD/EUR (EUR=X) may continue to exhibit a bearish behavior over the coming days
EUR/USD trades to a fresh weekly low (1.0821) ahead of the US Non-Farm Payrolls (NFP) report, and the exchange rate may continue to exhibit a bearish behavior over the coming days as it extends the series of lower highs and lows from earlier this week.
EUR/USD RATE GRINDS TOWARDS 2020 LOW AHEAD OF NFP REPORT
EUR/USD continues to chip away at the advance from the yearly low (1.0636)even though US Jobless Claims jumps a record 6.65M in the week ending March 28, and fresh updates to the NFP report may do little to curb the recent decline in the exchange rate as the US Dollar benefits from the flight to safety.
Nevertheless, US job growth is expected to contract 100K in March, which would mark the first decline since 2010, and the economic shock from the coronavirus may put pressure on the Federal Reserve to further support the economy as Fed officials anticipate a large pickup in unemployment.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1.11.
The projected lower bound is: 1.06.
The projected closing price is: 1.08.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 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 16.3441. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 42.87. 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 sell 18 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 -37. This is not a topping or bottoming area. The last signal was a buy 8 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 buy 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.002 at 1.084. Volume was 76% below average (consolidating) and Bollinger Bands were 129% wider than normal.
Open High Low Close Volume___
1.086 1.086 1.083 1.084 19,318
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.09 1.10 1.11
Volatility: 15 13 8
Volume: 122,864 101,827 78,454
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 2.1% 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 1 periods.