THE VULCAN REPORT
Review of EUR/USD - EURO DOLLAR (EUR/USD)
as of Wednesday, May 05, 2010
CHART PATTERNS
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are "high," it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white "UP" candles and 7 black "DOWN" candles for a net of 4 black (DOWN) candles.
During the past 50 bars, there have been 19 white "UP" candles and 31 black "DOWN" candles for a net of 12 black (DOWN) candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
PulseScan Swing Vix Swing Index
PulseScan: -29.29
Swing Vix: -29.07
Currently The Market Pulse is negative since it is trading below its signal line.The PulseScan crossed below the Swing Vix 2 period(s) ago.
PulseScan LONG ENTRY :
,,
,,
Swing Vix SHORT ENTRY :
,Hold shorts - 1st PulseWave - from 131.22
,
,Hold shorts - 2nd PulseWave - from 131.15,
NOTE: ALL positions were liquidated yesterday.
The Trend Channel is DOWN! (i.e. "Negative Swing Vix") This means that negative momentum is entering the market. Expect sideways to lower prices within the next 3-5 days
,
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area. The last signal was a Over-Sold Buy 60 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.
The security price has set a new 14-period low while the Swing Vix has not. This is a bullish divergence.
Since the Swing Vix crossed its moving average, EUR/USD - EURO DOLLAR's price has decreased 2.58%, and has ranged from a high of 133.300 to a low of 128.040.
MARKET TREND
Currently the TREND is VERY-BEARISH- Down.
The current market condition for EUR/USD - EURO DOLLAR is:
\Very Bearish
The close is currently Below it's 264 Long Term period moving average. 139.75
The close is currently Below it's 40 Intermediate Term period moving average. 135.53
The close is currently Below it's 10 Short Term period moving average. 133.22
Volatility
On 5/5/2010, EUR/USD - EURO DOLLAR closed below the lower band by 13.8%. Although prices have broken the lower band and a downside breakout is possible, the most likely scenario is for the current trading range that EUR/USD - EURO DOLLAR is in to continue. 59.38% wider than normal. The large width of the bands suggest high volatility as compared to EUR/USD - EURO DOLLAR's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 1 period(s). The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.
Attachment: eur usd chart - 6 may 2010.pdfThis has been downloaded 0 time(s).
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