By - Jamel Lahiani
Today our analysis will be concerned with:
The EURUSD is the most traded currency pair in the world. This pair represents the world two largest economies and has faced most volatility since the inception of the euro in 1999.
The USDCAD is a very popular currency pair and represent the exchange rate of the tow neighbor money, the U.S. and Canada.
FOREX Market Insights
Yesterday, the dollar moves slowly after low manufacturing data generated by US-CHINA trade war repercussion.
Today, the focus is on a series of high impact economic events:
At 12H30 GMT: The US Trade Balance released by the Bureau of Economic Analysis and the U.S. Census
At 14H00 GMT: monetary policy and interest rate decisions from the Bank of Canada,
GRAPHIC 1: EURUSD HOURLY CHART (AUGUST4, 2019)
After a long trending volatile movement to the downside, the pair has done a break yesterday to the upside. This explained by a low published performance of the US manufacturing sector. The uptrend is stopped now by a resistance level and required a news update from the tow economies for confirmation. If the new trend is not confirmed and the pair close to the downside of the MA14 line in blue color, then, the bearish movement takes the hand.
GRAPHIC 2: USDCAD HOURLY CHART (AUGUST 4, 2019)
We have a bullish volatile market inside the colored channel which is stopped by a breakout to the downside. The pair is facing a resistance line in red and move downing of MA14 in blue color. This movement can be continued to the downside leading to a strong downside trend if the publication of data by BOC at 14H00 GMT, concerning monetary policy of Canada are favorable to the Canadian economy. If after the publication the pair close to the upside of MA14 and the resistance line in red color then the uptrend takes the hand.
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