Euro: USD/EUR (EUR=X) trading higher after Federal Reserve Chair Jerome Powell said the central bank will “act as appropriate” to sustain expansion as “crosscurrents”

Euro: USD/EUR (EUR=X) trading higher after Federal Reserve Chair Jerome Powell said the central bank will “act as appropriate” to sustain expansion as “crosscurrents”

Euro: USD/EUR (EUR=X) trading higher after Federal Reserve Chair Jerome Powell said the central bank will “act as appropriate” to sustain expansion as “crosscurrents”

The Euro is trading higher on Wednesday after Federal Reserve Chair Jerome Powell said the central bank will “act as appropriate” to sustain expansion as “crosscurrents” are weighing on the economic outlook. This was enough to reverse Treasury yields to the downside, weakening the U.S. Dollar.

In prepared testimony to the House Financial Services Committee, Powell said business investments across the U.S. have slowed “notably” recently as uncertainties over the economic outlook linger.

The price action indicates that Powell’s prepared testimony struck a decidedly dovish cord.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.14.

The projected lower bound is: 1.12.

The projected closing price is: 1.13.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with FOREX EUR=) it implies a reversal. Look for a confirmation of the reversal on the bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend the long upper shadow indicates that the bears are gaining control and a top may occur.

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.

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 41.1391. This is not an overbought or oversold reading. The last signal was a buy 1 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 47.71. 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 235 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 -57. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.125. Volume was 99% below average (consolidating) and Bollinger Bands were 33% wider than normal.

Open High Low Close Volume___
1.125 1.126 1.125 1.125 1,299

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 1.13 1.12 1.13
Volatility: 6 6 7
Volume: 65,331 85,685 125,735

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 high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of EUR= (mildly bearish). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 2 periods.

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