Euro: USD/EUR (EUR=X) pushing higher after key support holds up

Euro: USD/EUR (EUR=X) pushing higher after key support holds up

Euro: USD/EUR (EUR=X) pushing higher after key support holds up

EUR/USD managed to rebound from the $1.1301 support level on Thursday, with the pair driving higher since.

While the wider creation of higher lows has been negated, last week’s drop took us into the 76.4% retracement of the $1.1215-$1.157 rally. Thus, there are arguments on both the bullish and bearish sides in relation to whether we will see this rally break through $1.157 or not. Whether or not we respect the upcoming Fibonacci resistance is one sign of the market intent. Thus, while further upside looks likely over the short term, watch for whether the likes of the 61.8% ($1.1462) or 76.4% ($1.1503) hold up.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.16.

The projected lower bound is: 1.13.

The projected closing price is: 1.14.

Candlesticks

A white body occurred (because prices closed higher 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.

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 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 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 91.6851. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 53.06. 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 118 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 2 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.000 at 1.143. Volume was 23% above average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
1.143 1.145 1.141 1.143 174,344

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

Moving Averages: 10-period 50-period 200-period
Close: 1.14 1.14 1.16
Volatility: 7 8 8
Volume: 160,093 144,212 142,259

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 1.2% 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 6 periods.

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