Euro: USD/EUR (EUR=X) moves to 3-month high, menacing resistance above 1.14 figure
The Euro is attempting to make good on completing a bullish Falling Wedge chart formation, reversing higher form a deep corrective setback to reach a three-month high against the US Dollar. Breaking resistance marked by the June 7 swing top at 1.1348 has exposed the March 20 high at 1.1448. The seemingly more potent 1.1543-54 price inflection zone follows thereafter.
The case for lasting upside follow-through looks suspect however, at least for now. Negative RSI divergence warns of ebbing upside momentum even as the pair gains ground. A look at more immediate positioning on the four-hour chart also warns against bullish exuberance. It reveals a Bearish Engulfing candlestick pattern that might prove to be indicative of a top.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.13.
The projected upper bound is: 1.15.
The projected lower bound is: 1.13.
The projected closing price is: 1.14.
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 27 white candles and 23 black candles for a net of 4 white candles.
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 93.0664. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 64.62. 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 223 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 144.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.001 at 1.138. Volume was 75% below average (consolidating) and Bollinger Bands were 60% wider than normal.
Open High Low Close Volume___
1.140 1.141 1.138 1.138 28,363
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.13 1.12 1.13
Volatility: 7 6 7
Volume: 65,298 94,738 129,706
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 0.3% above its 200-period moving average and is in an upward 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 bullish on EUR= and have had this outlook for the last 15 periods.