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.
GRAPHIC 1: EURUSD DAILY CHART (AUGUST 16, 2019)
Yesterday, the Data related to retail sales by the US Census Bureau is very good for the US economy so the USD was appreciated and the EURUSD pair followed the downside movement. The daily chart is trending volatile. The chart is under the resistance line and MA14. The trending resistance line in red gives the direction of the movement. Because of the volatility of the trend the entry must be taken around the trending resistance line in red color or when the chart cross the trending resistance line in red to the down side. Other entry could be taken when the chart crosses MA14 in blue and close to the downside.
GRAPHIC 2: EURUSD HOURLY CHART (AUGUST 16, 2019)
The hourly chart is bearish. We can see that the movement is volatile. The trending resistance line in red gives the orientation of the trend. A good entry to the market could be to sell when the chart crosses the MA14 or the trending resistance line in and close to the downside. Or to wait the publication of data related to housing and building Permits released by the US Census Bureau at 12H30 GMT. If the published data is favorable to the US economy the chart will breaks the lowest level of the graphic to the downside “sell”. If the published data is bad for the US economy then the chart breaks the trending resistance line to the upside “buy”.
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