FXE slides to lowest close since April 26th
CurrencyShares Euro ETF (FXE) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FXE finished the week -0.62% lower at 106.35 after losing $0.16 (-0.15%) today. Today's close at 106.35 marks the lowest recorded closing price since April 26th. Closing below Thursday's low at 106.42, the ETF confirmed its breakout through the previous session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (FXE as at May 17, 2019):
Friday's trading range has been $0.18 (0.17%), that's below the last trading month's daily average range of $0.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FXE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on Tuesday, FXE lost 0.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 106.08, downside momentum might accelerate should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FXE. Out of 76 times, FXE closed higher 52.63% 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 four trading days, showing a win rate of 55.26% with an average market move of 0.10%.