EUR/USD continues to test the nearest resistance level at 1.1830 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index has recently failed to settle above the 93 level and pulled back closer to 92.75. The nearest material support level for the U.S. Dollar Index is located at 92.50. If the U.S. Dollar Index settles below this level, it will gain downside momentum and head towards the next support near the recent lows at 92.10. This scenario will be bullish for EUR/USD.
There are no important economic reports scheduled to be released in the U.S. and EU today so traders will likely focus on the general trading dynamics of the American currency. The U.S. Dollar Index will have a chance to continue its rebound from recent lows in case it gets above the 93 level, but it remains to be seen whether is has sufficient support from traders.
Euro/US Dollar Exchange Rate
Today’s Forex Rates
EUR/USD FX Polls
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.17.
The projected upper bound is: 1.19.
The projected lower bound is: 1.16.
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 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.
An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with FOREX EUR=) it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with FOREX EUR=) the long upper shadow indicates that the bears are gaining control and a top may occur.
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 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…
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