Euro: USD/EUR (EUR=X) Stalls During The Session

Euro: USD/EUR (EUR=X) Stalls During The Session

Euro: USD/EUR (EUR=X) Stalls During The Session

The Euro went back and forth during the trading session on Tuesday, as we continue to dance around the 1.11 level. This is an area that has been both support and resistance as of late, so don’t be surprised at all to see this market go back and forth and quite frankly struggle. To the upside, the market has to deal with the 1.12 level and of course the 200 day EMA which is painted in black on the chart. Yes, the Monday candlestick was very strong, but we have seen these types of impulsive candles before, but in the end of the overall trend is to the downside.

The 1.10 level underneath will probably be massive support, so don’t be surprised at all to see that cause a bit of a bounce. However, if we were to break down below that level, then it’s likely that the market breaks down to the 1.09 level. All things being equal, I believe that the market is likely to continue below there and go looking towards 1.0750 level, as the gap down there has yet to be filled.

Because of this, the market will more than likely be attracted to that level, and quite frankly it isn’t that difficult to imagine a scenario where there is a major “risk off” situation that since this market much lower. On the upside, if we were to break above the 1.12 handle on a daily or weekly close, that could be a longer-term buying opportunity.

Technical Indicators

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.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white 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.

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 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 89.6450. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 56.53. 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 66 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 93. This is not a topping or bottoming area. The last signal was a sell 0 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 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.108. Volume was 97% below average (consolidating) and Bollinger Bands were 43% narrower than normal.

Open     High      Low     Close     Volume___
1.108 1.108 1.108 1.108 2,129
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.10 1.10 1.12
Volatility: 4 4 6
Volume: 56,489 68,582 90,559

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 0.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 15 periods.

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