FXE fixing to rally?3 concentric containment MAs. Are we done with this lengthy and parabolic slide? Today felt like a bottom of sorts to me.
Key stats
About Invesco CurrencyShares Euro Currency Trust
Home page
Inception date
Dec 9, 2005
Structure
Grantor Trust
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Ordinary Income
Max ST capital gains rate
39.60%
Max LT capital gains rate
39.60%
Distributor
Invesco Distributors, Inc.
FXE allows investors to access the euro with holdings of physical euros in a deposit account. This simple structure allows the fund to closely track the euro/US dollar spot exchange rate. Still, it is worth noting that: 1) distributions and share sales of FXE are always taxed as ordinary income, so increase in holding cost should be expected, and 2) the fund's physical deposits of euros are uninsured, so it carries the default risk of its depository, JPMorgan. Additionally, another thing to note on FXE is that it doesn't deliver the overnight lending rate like its benchmark does.
Classification
Symbol
Geography
Eurozone
What's in the fund
Exposure type
Cash
Bonds, Cash & Other100.00%
Cash100.00%
FXE - fixing to rally?Progressively tighter containment MAs portend possible imminent rally. Possibly brief but May be explosive.
FXEAlmost a 3:1 containment under the 4 day MA of highs. I’m definitely a buyer if it breaks that MA. Tempting now but would wait for 3.5:1 to do preemptively.
FXE - a one day relief rallyNot uncommon. This happens. Important not to get married to a trade or position. After a compression ratio of about 4:1, not surprised to see a pop. The real potential reversal is the zero slope MA just above recent price action. Potentially explosive if violated.
FXEWas that the exhaustion move? Everyone who wanted to sell is done? I'd look for at least a decent retracement. Prompted by the Friday number?
BITO, FXE, GLD, TLTThe markets BITO, FXE, GLD, TLT are all under extreme downleg compressions. A resolution or resolution failure could cause an extreme reaction in any or all of these markets. If there is a marked retracement in any of these markets an out of the money call position could offer an exceptional oppor
FXE - waiting on the reaction swingThe long term zero slope pivot MA and the containment MA together warning of imminent and perhaps significant if not lengthy rally. I am in preemptively and also have some dry powder if/once triggered.
FXE - what will trigger the upside move?Not sure I've seen too many better upside pivot setups. I'm already long preemptively with tight stops. The real juice is just above with zero slope MA and containment MA now also roughly zero slope.
Monthly Stochastic Bullish Divergence FXE Monthly Stochastic (14,3,3) Bullish Divergence FXE
Long FXE
T/P @ 120
S/L @ 95.86
See all ideas
Summarizing what the indicators are suggesting.
Oscillators
Neutral
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Oscillators
Neutral
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Summary
Neutral
SellBuy
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Neutral
SellBuy
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Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Displays a symbol's price movements over previous years to identify recurring trends.