EUR/USD gained strong upside momentum and is trying to get to the test of the resistance at 1.1870 as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is currently testing the nearest support level at 92.80 amid optimism about the U.S. stimulus deal. In case the U.S. Dollar Index manages to settle below the support at 92.80, it will gain additional downside momentum and decline towards 92.50 which will be bullish for EUR/USD.
There are no important economic reports scheduled to be released today in the U.S. and EU so traders will focus on U.S. stimulus negotiations and developments on the Brexit front, although the first days of this week brought no news about negotiations between EU and UK.
U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have moved closer to a compromise, providing support to riskier assets and putting pressure on the American currency.
Currently, the market believes that Mnuchin and Pelosi will be able to negotiate a deal by the end of this week. If negotiations stall, the U.S. dollar will get a boost which will be bearish for EUR/USD.
Euro/US Dollar Exchange Rate
Today’s Forex Rates
EUR/USD FX Polls
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.20.
The projected lower bound is: 1.17.
The projected closing price is: 1.18.
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 25 white candles and 25 black 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 86.5674. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 57.96. 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 46 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.002 at 1.185. Volume was 77% below average (consolidating) and Bollinger Bands were 28% narrower than normal.
Open High Low Close Volume 1.186 1.186 1.184 1.185 23,834 Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish Moving Averages: 10-period 50-period 200-period Close: 1.18 1.18 1.13 Volatility: 7 7 9 Volume: 86,493 99,528 104,643
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 4.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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.