By - Jamel Lahiani
Today our analysis will be concerned with EURUSD, the most traded currency pair in the world. This pair represents the world’s two largest economies and has faced most volatility since the inception of the euro in 1999.
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President Donald Trump this week has decided to browbeat the Federal Reserve into slashing rates, calling for the central bank to lower its key short-term rate by “at least” a full percentage point “over a fairly short period of time.” This impact will be seen at the market at short term. If it is good the dollar will be appreciated against the Euro.
GRAPHIC 1: EURUSD DAILY CHART (AUGUST 23, 2019)
The daily chart is trending volatile inside the colored channel. Because of the volatility of the trend, a good Sell entry could be taken when the chart crosses MA14 in blue and close to the downside. If the pair breaks the green support line and close to the downside then the bearish trend will continue.
The data published by the US Department of Labor related to the Initial Jobless Claims is seen well by the market then the dollar was appreciated.
GRAPHIC 2: EURUSD HOURLY CHART (AUGUST 23, 2019)
We have a bearish market inside the colored channel. A good entry to the market could be to sell at the top of the channel. If the chart breaks the green support line and close to the downside then we can sell this pair. At 14H00 GMT, The number of New Home Sales released by the US Census Bureau will be published that can have a significant impact on the market.
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