FXE closes above its opening price after recovering from early selling pressure
CurrencyShares Euro ETF (FXE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
FXE ended the week 0.29% higher at 110.66 after losing $0.33 (-0.3%) today. Trading up to $0.16 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FXE as at Oct 12, 2018):
Friday's trading range has been $0.31 (0.28%), that's below the last trading month's daily average range of $0.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FXE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 19th, FXE gained 0.88% on the following trading day.
After trading down to 110.43 earlier during the day, the market bounced off the key technical support level at 110.58 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 111.03 where further buy stops might get triggered. As prices are trading close to October's high at 111.18, upside momentum could speed up should FXE mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for FXE. Out of 339 times, FXE closed higher 62.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 50.15% with an average market move of 0.00%.