EUR - Intrinsic value

🔹 Introduction

The EUR - Intrinsic Value indicator is a unique tool that reconstructs the intrinsic value of the euro by aggregating the main Forex pairs associated with the EUR. This indicator provides a clearer view of the overall trend of the euro, independently of any specific currency pair.

It allows traders to better anticipate movements in EURUSD, especially when combined with the U.S. Dollar Index (DXY). By analyzing both, traders can identify moments of strong momentum and optimize their trade entries.



🔹 How to Use the Indicator?

1️⃣ Add the Indicator to a Chart: The indicator plots candles representing the intrinsic value of the EUR (see Technical information below).
2️⃣ Analyze the DXY Trend:

• 🔵 If DXY is rising → Bearish momentum likely for EURUSD and other USD pairs.
  
• 🔴 If DXY is falling → Bullish momentum likely for EURUSD and other USD pairs.
  
• ⚫ If DXY is ranging → Consolidation likely, be cautious of false breakouts.
  

3️⃣ Confirm with EUR:

• 🔥 DXY falling + EUR rising → EURUSD likely to surge with strong momentum 📈
  
• ❄️ DXY rising + EUR falling → EURUSD likely to drop with strong momentum 📉
  

4️⃣ Adjust Strategy Based on Context: Wait for confirmations at key support/resistance levels and use other tools to validate trade entries.



🔹 What Value Does This Indicator Provide ?

The EUR - Intrinsic Value indicator offers multiple advantages for trading EURUSD and other EUR-related pairs:

✅ Trend Identification: Determine if the euro is in an uptrend, downtrend, or consolidation phase, regardless of individual currency fluctuations.
✅ Better Trade Timing: Combining this indicator with the Dollar Index (DXY) helps detect setups where EURUSD is likely to experience strong momentum.
✅ A Complementary Tool for Price Action: Use this indicator alongside other technical tools to confirm optimal trade entry/exit points.



🔹 Visual Examples

Shift in market structure in DXY and in EUR in the same time, giving a trend and strong momentum on EURUSD :



This indicator works on any timeframe (even sub 1m)


Note : I use Watermark° script from toodegrees, to show the currency and the timeframe on the top right of charts.



🔹 How Does the Indicator Work?

The indicator is based on a weighted average of the euro’s movements against seven major currencies:

📌 Currencies Included in the Calculation:

• EURUSD (Euro vs U.S. Dollar)
  
• EURCAD (Euro vs Canadian Dollar)
  
• EURGBP (Euro vs British Pound)
  
• EURCHF (Euro vs Swiss Franc)
  
• EURAUD (Euro vs Australian Dollar)
  
• EURNZD (Euro vs New Zealand Dollar)
  
• EURJPY (Euro vs Japanese Yen)
  

The indicator extracts opening, closing, high, and low prices from each pair and create an independent value of the EUR, displayed as a custom candle chart.



🔹 Why Is This Indicator Unique?

Unlike traditional indicators that rely on a single pair, this tool artificially recreates an index for the euro by combining multiple currency pairs. This gives a broader perspective and helps traders to better time entry/exit points.

Rather than relying on a simple average, it accounts for the dynamic changes in EUR across multiple markets simultaneously.



🔹 Technical Information

📊 Display: Custom candles representing the intrinsic value of the EUR.
⏳ Supported Timeframes: Compatible with all timeframes.
⚠️ Limitations:

• This indicator does not provide direct buy/sell signals but serves as a contextual tool to improve EUR trading decisions.
  
• This is an indicator, it means you can't use other indicators on it.
  
• You can draw on it, but your draws will not be able to stay magnet to the EUR indicator
  

Follow this three simple steps below to use this indicator on TradingView :

1. Select any forex pair on your chart (important to get a correct chart)
   
2. Hide it by clicking the 3 dots and then "Hide"
   
3. Add the "EUR - Intrisic value" indicator to your chart and set it as Full screen
   

🔹 Conclusion

The EUR - Intrinsic Value indicator is a powerful tool for traders looking to anticipate euro movements in the Forex market. By combining it with DXY and other technical analysis tools, it provides a clearer understanding of trading opportunities, reducing false signals and improving decision-making.

🚀 Use this indicator to refine your trade entries and capitalize on the best market opportunities! 🔥



⚠️Terms and Conditions⚠️

This financial tool is for educational purposes only and not financial advice. Users assume responsability for decisions made based on the tool's information.
Past performance doesn't guarantee future results.
By using this tool, users agree to these terms.