Euro: USD/EUR (EUR=X) rebounding amid recent breakdown

Euro: USD/EUR (EUR=X) rebounding amid recent breakdown

Euro: USD/EUR (EUR=X) rebounding amid recent breakdown

EUR/USD has been breaking lower since hitting trendline resistance last week.

The fall below trendline support led us to further declines, with the short term creation of lower highs and lower lows providing us with the potential of further downside from here. Given this recent period of weakness, there is a good chance of a further downside to come, with the current upside looking like a retracement before we turn lower once more. A break above $1.1432 would negate this bearish outlook for the day.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1.15.

The projected lower bound is: 1.12.

The projected closing price is: 1.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 23.6723. This is not an overbought or oversold reading. The last signal was a sell 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 43.47. 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 72 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 -23. This is not a topping or bottoming area. The last signal was a buy 8 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 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.002 at 1.132. Volume was 6% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
1.134 1.138 1.132 1.132 129,452

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

Moving Averages: 10-period 50-period 200-period
Close: 1.14 1.15 1.18
Volatility: 9 8 8
Volume: 150,027 138,809 139,270

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 3.9% below 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 4 periods.

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