Euro: USD/EUR (EUR=X) to be moved by Brexit and industrial production

Euro: USD/EUR (EUR=X) to be moved by Brexit and industrial production

Euro: USD/EUR (EUR=X) to be moved by Brexit and industrial production

The Euro-to-Dollar exchange rate is trading at around 1.1035 at the start of the new week after rising 0.27% in the week before. Studies of the charts are showing the potential for more upside in the short-term dependent on a break to new highs.

For more bullish confirmation, however, we would ideally wish to see a clear break above the 1.1063 highs, with such a move leading to a continuation up to a target at 1.1100 – or possibly even higher – in the short-term.

The daily chart shows how the pair has broken out above its downsloping trendline, touched the 50-day moving average (MA), and then pulled-back marginally.

The 50-day MA is likely to present a tough obstacle to further upside and for confirmation we would ideally wish to see a clear break above the 1.1063 highs which could then lead to a continuation up to a target at 1.1200.

The daily chart is used to give us an indication of the outlook for the medium-term, defined as the next week to a month ahead.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.11.

The projected lower bound is: 1.09.

The projected closing price is: 1.10.

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 20 white candles and 29 black candles for a net of 9 black candles.

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 77.1262. This is not an overbought or oversold reading. The last signal was a buy 9 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 55.15. 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 29 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 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 -0.000 at 1.104. Volume was 100% below average (consolidating) and Bollinger Bands were 16% narrower than normal.

Open     High      Low     Close     Volume___
1.104 1.105 1.103 1.104 203
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.10 1.10 1.12
Volatility: 3 6 6
Volume: 67,790 78,589 105,975

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 1.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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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