USD/EUR (EUR=X) short-term bullish above 1.1720

USD/EUR (EUR=X) short-term bullish above 1.1720

USD/EUR (EUR=X) short-term bullish above 1.1720

The EUR/USD pair regained the 1.1600 level and in fact, trimmed its weekly losses last Friday, closing the week at 1.1683. The common currency got a boost from news that the so far 28 EU members, came to an agreement on migration issues, deciding among other things, to relocate refugees among member states and the possibility of setting up migrant centers.

From a technical point of view, the daily chart shows that the price remained below the 1.1720 level, where the pair topped for the week and where it also has the 23.6% retracement of the April/May slump. In the same chart, the price settled a few pips above a bearish 20 DMA, while technical indicators have recovered within negative territory, not enough to confirm further gains ahead which can happen on a clear break above the mentioned static resistance, opening doors then for a retest of the 38.2% retracement of the same decline at 1.1855.

In the 4 hours chart, chances of an upward continuation are stronger, as the pair overcame its 20 and 100 SMA and closed a few pips below the 200 SMA, while the Momentum indicator aims north above its mid-line and the RSI hovers around 60. Below 1.1660, chances of an upward continuation will likely decrease, but bears will recover control with a break of 1.1620.

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 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 23 white candles and 27 black candles for a net of 4 black candles.

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 57.7777. This is not an overbought or oversold reading. The last signal was a sell 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 47.88. 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 23 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 50. This is not a topping or bottoming area. The last signal was a buy 7 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.002 at 1.166. Volume was 97% below average (consolidating) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
1.165 1.170 1.163 1.166 3,723

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: 9 9 9
Volume: 144,030 142,094 125,544

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 2.7% 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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