Euro: USD/EUR (EUR=X) Rate Flat as Italian PM Conte’s Possible Resignation in Spotlight
The Euro US Dollar (EUR/USD) exchange rate held steady at $1.107 today, as Italian Prime Minister Giuseppe Conte may face removal as Deputy Prime Minister, and leader of the League, Matteo Salvini could push for a no-confidence vote in the Government.
As Mr Salvini – a prominent Eurosceptic – hopes to push for a general election, which could benefit his party the League along with other right-wing allies, this has left many Euro traders cautious.
This comes following a breakup between the League and the 5-Star Movement, amid heated comments from the party’s founder, Beppe Grillo, who called Salvini an ‘untrustworthy traitor’.
If the Italian Prime Minister resigns today, we could see the Euro fall as fears of Italy’s exiting from the European Union would become more likely. This could also allow the Eurosceptic League could step up as a leading party.
Both political and economic woes are preventing the European currency from making any gains against the US Dollar today, as fears mount over the Eurozone’s economy after yesterday’s inflation figures hit a 2-year low.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.12.
The projected upper bound is: 1.12.
The projected lower bound is: 1.10.
The projected closing price is: 1.11.
A white body occurred (because prices closed higher 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 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.
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 21.6709. This is not an overbought or oversold reading. The last signal was a buy 0 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 40.82. 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 264 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 -73. This is not a topping or bottoming area. The last signal was a buy 13 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.000 at 1.110. Volume was 99% below average (consolidating) and Bollinger Bands were 8% narrower than normal.
Open High Low Close Volume___
1.110 1.110 1.110 1.110 825
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.11 1.12 1.13
Volatility: 4 6 6
Volume: 77,106 76,423 117,886
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 1.6% below its 200-period moving average and is in an downward trend. Volatility is low 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 31 periods.
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