Euro: USD/EUR (EUR=X) sits at one-week low after GDP boost as trade risks weigh
The Euro was languishing at a one-week low Wednesday after official figures confirming a pickup in the economy during the first-quarter failed to inspire a bid for the single currency, with the data coming as major banks continue to downgrade their EUR/USD forecasts.
Eurozone GDP growth was confirmed on Wednesday at 0.4% for the first-quarter, with the expansion having been aided by a solid pickup in the German economy at the start of the New Year. German GDP growth rose to 0.4% during the quarter, up from 0% at the end of 2018.
GDP growth picked up in Germany, Italy, Hungary, Bulgaria, Poland, Romania and Slovakia during the recent quarter, Eurostat‘s second estimate of GDP growth shows, although the most notable improvement is that in Germany given the size of the economy.
“The German economy came off to a pleasantly good start in 2019. After narrowly avoiding a technical recession in H2 2018,” says Shayne Heffernan, CEO and Founder of Heffx. “After a subdued Q2 (0.2% qoq), chances are that German growth can pick up on a more sustained basis throughout H2 (0.4% on average). Amid recently escalating trade tensions the downside risks loom large, though.”
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.13.
The projected lower bound is: 1.11.
The projected closing price is: 1.12.
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white 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 42.5610. This is not an overbought or oversold reading. The last signal was a buy 12 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 46.72. 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 194 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 8. This is not a topping or bottoming area. The last signal was a sell 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 buy 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed unchanged at 1.120. Volume was 27% below average (neutral) and Bollinger Bands were 39% narrower than normal.
Open High Low Close Volume___
1.120 1.122 1.117 1.120 100,251
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.12 1.12 1.14
Volatility: 3 6 7
Volume: 111,659 124,542 137,619
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 1.7% below its 200-period moving average and is in an upward 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 bullish on EUR= and have had this outlook for the last 1 periods.
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