The Euro US Dollar (EUR/USD) exchange rate is declining on Tuesday paring gains from the previous session. The pair experienced high levels of volatility in the previous session, trading a range of 130 pips before settling towards the upper end of the daily traded range +0.2% at US$1.2242. At 07:15 UTC, EUR/USD trades -0.1% at US$1.2227.
The risk off mood continues on Tuesday amid concerns over the new strain of covid that is surging across the UK and which led to an emergency meeting of EU authorities.
The new strain appears much more contagious, although so far it is not showing signs of being more deadly. Investors fear that the new strain could slow the global economic recovery.
Stronger than expected German GFK consumer confidence data has failed to lift the common currency. Consumer sentiment in the Eurozone’s largest economy slipped by less than expected for January printing at -7.3, down from -6.8 in December. This was the lowest reading since July however it was noticeably better than the -9.5 that was forecast.
The US Dollar eased back from session highs on Monday to end the session lower after the US Congress agreed to $900 billion covid rescue package alongside at $1.4 trillion dollar government spending deal.
This giant spending package comes as recent data showed that the US labour market recovery is stalling and could help the US avoid a double dip recession.
Even so, that hasn’t been enough to distract investors from covid concerns. Today, safe haven flows are once again lifting the US Dollar. The risk off mood was also evident in US futures market with S&P pointing to a lower start.
Looking ahead the US GDP Q3 final reading is due later in the US session. Expectations are for 33% YoY growth in the third quarter.
Euro/US Dollar Exchange Rate
Today’s Forex Rates
EUR/USD FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.19.
The projected upper bound is: 1.23.
The projected lower bound is: 1.21.
The projected closing price is: 1.22.
A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 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 48.6606. This is not an overbought or oversold reading. The last signal was a sell 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 62.41. 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 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed up 0.003 at 1.219. Volume was 58% below average (consolidating) and Bollinger Bands were 37% wider than normal.
Open High Low Close Volume 1.216 1.219 1.215 1.219 44,709
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.22 1.19 1.15 Volatility: 7 7 9 Volume: 114,578 110,962 110,588
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 6.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
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 33 periods.