USD/EUR (EUR=X) Escalating trade fight weighs on global stocks, boosts Treasuries

USD/EUR (EUR=X) Escalating trade fight weighs on global stocks, boosts Treasuries

USD/EUR (EUR=X) Escalating trade fight weighs on global stocks, boosts Treasuries

  • Long-dated notes gain on trade war, Europe concerns
  • Wall Street indexes see steepest losses since April
  • Wall St lower on U.S. trade disputes with China, Europe
  • Oil drops as traders factor in OPEC output rise

Global stock markets sank on Monday as the trade fight between the United States and other top economies escalatedand benchmark Wall Street indexes suffered their worst losses in more than two months while safe-haven investments gained.

U.S. Treasury Secretary Steven Mnuchin on Monday said forthcoming investment restrictions would apply “to all countries that are trying to steal our technology,” not just to China.

Hours later, White House trade and manufacturing adviser Peter Navarro walked back Mnuchin’s remarks, telling CNBC that the restrictions on investing in tech companies would just target China.

The European autos sector SXAP was hit by trade tensions between Washington and Europe, falling 2.4 percent in a seventh straight day of losses after U.S. President Donald Trump said on Friday he aimed to hike tariffs on European Union car imports by 20 percent.

A senior European Commission official said on Saturday the European Union would respond to any U.S. move to raise tariffs on cars made in the bloc.

In the currency market, the dollar index DXY fell 0.22 percent, with the euro EUR up 0.38 percent to $1.1699.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1.18.

The projected lower bound is: 1.15.

The projected closing price is: 1.17.

Candlesticks

A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 black 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.

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 92.2411. 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 48.24. 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 19 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 21. This is not a topping or bottoming area. The last signal was a buy 3 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 down -0.000 at 1.170. Volume was 96% below average (consolidating) and Bollinger Bands were 15% narrower than normal.

Open High Low Close Volume___
1.170 1.171 1.170 1.170 5,332

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

Moving Averages: 10-period 50-period 200-period
Close: 1.16 1.18 1.20
Volatility: 13 9 9
Volume: 147,748 140,501 124,878

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 2.4% below its 200-period moving average and is in an upward trend. Volatility is high 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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