By - Jamel Lahiani
Today our analysis will be concerned with EURUSD, 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.
FOREX Market Insights
The market still expecting the trump rate cut impact at short term. The EURUSD pair could edge sideway ranging today as the market grows more concerned about recessions because of the Sino-U.S trade war shook. At G7 meeting Trump caused some confusion by indicating he may have had second thoughts on the tariffs, explained by the white house that he wished he had raised tariffs on Chinese goods even higher.
GRAPHIC 1: EURUSD HOURLY CHART (AUGUST 27, 2019)
We have a sideways ranging market inside the colored channel. The pair moves between two limit of the channel. A good entry to the market could be to sell at the top of the channel and buy at the bottom. If the chart breaks the red resistance line and close to the downside then we can sell this pair. If the chart breaks the green support line and close to the upside then we can buy this pair
The CCI indicator or the commodity channel index indicator is an oscillator. This indicator oscillates between fixed levels of +100 and -100. It is interesting to sell the pair when the pair is overbought that mean CCI is more than +100. At short term, we can buy at the bottom of the channel when the pair is oversold that mean CCI is more less than -100.
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