Euro: EUR/USD (EUR=X) Under Pressure as ECB Looks Ready to Add More QE – Live Trading News

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Euro Outlook EUR/USD fell 0.40% to 1.1750 with significant support nearby at 1.1700. A failure would target further losses to 1.1700. The dollar-bloc currencies came in for particular attention. The greenback enjoyed a robust overnight session as investors rotated out of G-10 currencies and into dollar and yen haven positioning. The dollar index rose through its 50-day moving average (DMA), finishing 0.50% higher at 93.50. It may well test monthly resistance at 94.00 into the end of the week. The ECB left unchanged interest rate on the main refinancing operations at 0%, the interest rate on the marginal lending facility at 0.25% and the deposit facility at -0.50%.. The ECB left the PEPP bond buying programme at €1.5 trillion, unchanged and which is expected to run until at least June next year. Furthermore, the ECB indicated that the updated projections to be released in December should help recalibrating the stimulus. The ECB sees interest rates remaining at current or even lower levels until the inflation outlook converges with the bank’s target. President Christine Lagarde’s press conference and the subsequent Q&A session are now in focus.

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Technical Indicators

Overall, the bias in prices is: Sideways. By the way, prices are vulnerable to a correction towards 1.16. The projected upper bound is: 1.18. The projected lower bound is: 1.16. 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 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 14.5578. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 41.21. 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 52 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 -125.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed up 0.000 at 1.168. Volume was 75% below average (consolidating) and Bollinger Bands were 31% narrower than normal. Open High Low Close Volume 1.167 1.169 1.167 1.168 25,777 Technical Outlook Short Term: Oversold Intermediate Term: Bullish Long Term: Bullish Moving Averages: 10-period 50-period 200-period Close: 1.18 1.18 1.13 Volatility: 7 7 10 Volume: 91,049 100,159 106,123 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 3.2% 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 7 periods.