Euro: USD/EUR (EUR=X) Recovers for Second Straight Session
The trend of weak economic data continued on Wednesday as the ADP reported an increase of 135,00 jobs in the US private sector from August to September. While this was only marginally below the analyst estimate, there was a notable downward revision for the prior reading from 195,000 to 157,000.
Earlier in the week, the ISM reported the manufacturing index to contract for the first time in three years. The sector appears to be weak globally as trade war concerns have weighed.
Further exacerbating the issue, the White House announced on Wednesday their intentions to expand the trade war out to Europe. Officials said they would place a 10% tariff on Airbus planes made in Europe and 25% on certain alcohol products as well as cheese.
The measures are set to take effect on October 18. Negotiations are to take place ahead of that and the European Union will attempt to strike some kind of a deal to prevent the new tariffs.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.11.
The projected upper bound is: 1.11.
The projected lower bound is: 1.09.
The projected closing price is: 1.10.
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 21 white candles and 28 black candles for a net of 7 black candles.
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 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 67.3187. This is not an overbought or oversold reading. The last signal was a buy 2 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 47.03. 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 22 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 -13. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.003 at 1.098. Volume was 15% below average (neutral) and Bollinger Bands were 4% narrower than normal.
Open High Low Close Volume___
1.096 1.100 1.094 1.098 67,113
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.10 1.11 1.12
Volatility: 6 6 6
Volume: 66,947 80,798 107,147
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 2.2% 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 62 periods.
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