Euro: USD/EUR (EUR=X) seeing some mild selling pressure
EUR/USD settled slightly lower on Monday to end a four consecutive day rally. The pair is seeing some mild selling pressure and is nearing an important support confluence.
EUR/USD has had an impressive gain in October thus far, aided by demand for Sterling as the odds of a no-deal Brexit have declined significantly.
A vote was supposed to take place on Saturday that would decide on the latest Brexit deal which has already been approved by the EU. The vote, however, was delayed in favor of first passing the required regulation for an EU exit. This move was made to eliminate any loopholes that would force the UK to leave without a deal.
The EU (withdrawal agreement) bill published yesterday on the UK government website. But more importantly, it became apparent yesterday that it will likely take more than a week for this bill to pass, if it gets the required votes that is.
With this news signaling that a deal won’t be voted on anytime soon, I think EUR/USD could pare some gains at this stage.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.12.
The projected lower bound is: 1.10.
The projected closing price is: 1.11.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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 83.4584. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 15 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 61.51. 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 35 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 14 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 buy 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.002 at 1.112. Volume was 1% below average (neutral) and Bollinger Bands were 45% wider than normal.
Open High Low Close Volume___
1.115 1.116 1.112 1.112 77,167
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.11 1.10 1.12
Volatility: 5 6 6
Volume: 81,111 78,307 104,389
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 0.7% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into EUR= (mildly bullish). Our trend forecasting oscillators are currently bullish on EUR= and have had this outlook for the last 7 periods.