Euro: USD/EUR (EUR=X) off Lows With Germany to Reopen Economy as Soon as Monday

Euro: USD/EUR (EUR=X) off Lows With Germany to Reopen Economy as Soon as Monday

Euro: USD/EUR (EUR=X) off Lows With Germany to Reopen Economy as Soon as Monday

The euro moved off session lows against the dollar on Wednesday, amid reports Germany, the economic powerhouse of Europe, plans to reopen parts of its economy as soon as Monday.

“We have achieved a fragile intermediate success, but we don’t have much room for maneuver, so we must continue by concentrating fully,” German Chancellor Angela Merkel said, according to media reports.

EUR/USD fell 0.55% to $1.0919, but had fallen to $1.0857 at the lows of the day.

The reopening of the economy, however, will be staggered, with retailers of up to 800 square meters allowed to reopen on Monday only if they have a plan for good hygiene.

Schools in the country would begin reopening on May 4, but large public events will remain banned until at least August 31.

The announcement comes as some have flagged the risk of further downside in the euro should governments around Europe continue to delay the easing of coronavirus lockdowns.

“We assume a plan will ultimately be agreed but doubts over the scale of policy support in the eurozone will persist and is a risk factor for the euro if risk-off trading conditions were to re-emerge due to lockdown reversal delays that shift current expectations on the COVID-19 hit to the global economy,” Shayne Heffernan, CEO and Founder of Heffx said.

Technical Indicators

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: 1.09.

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 24 white candles and 25 black candles for a net of 1 black 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 54.6070. This is not an overbought or oversold reading. The last signal was a sell 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 46.25. 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 27 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 -34. This is not a topping or bottoming area. The last signal was a buy 17 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.003 at 1.088. Volume was 70% below average (consolidating) and Bollinger Bands were 9% wider than normal.

Open High Low Close Volume___
1.091 1.091 1.086 1.088 26,210
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.09 1.10 1.11
Volatility: 9 14 8
Volume: 98,670 108,815 79,944

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 1.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 10 periods.

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