By - Jamel Lahiani
Today our analysis will be concerned with:
USDCAD (US Dollar/ Canadian Dollar): is a very popular currency pair and represent the exchange rate of the two neighbor money, the U.S. and Canada.
USDJPY (US Dollar/ Japanese Yen): the USDJPY pair is one of the most traded pairs in the world. The value of these currencies is highly affected by the interest rate differential between the Federal Reserve and the Bank of Japan.
FOREX Market Insights
Today, the Current Account published by the Japanese Ministry of Finance records
¥2157.7B that is more than expected and indicate a good performance of the Japanese
Economy. The US Dollar is under pressure coming from Trump’s impeachment headaches
and the US-China trade war that have an increasing negative impact on the US economy.
Today in Focus
Today, we have a high impact published indicator:
AT 12H30 GMT: The US Producer Price Index ex Food & energy released by the Bureau of Labor Statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing.
AT 12H30 GMT: The Canadian Building Permits released by Statistics Canada shows the number of permits for new construction projects. It implies the movement of corporate investments (the Canadian economic development).
GRAPHIC 1: USDJPY HOURLY CHART (OCTOBER 8, 2019)
The yen recognize an appreciation against the US Dollar and cross the MA14 in blue color. This
movement is explained by the good result of the Japanese current account “see in focus”. If the
movement of the chart continues to the downside and close outside the colored channel then a
down trend is very plausible, Sell. If the movement persists inside of the channel we can use the
Stock RSI indicator to select a good entry. If the Stock RSI is lower than 20 and the blue line cross the
red we can buy this pair. If the Stock RSI is higher than 80 and the red line cross the blue, we can sell
GRAPHIC 2: USDCAD HOURLY CHART (OCTOBER 8, 2019)
The USDCAD follows a bearish movement inside the colored channel. The movement is volatile
between the two limits of the channel. It is interesting to sell, when the Stock RSI indicator is higher
than 80 and the red line cross the blue line or when the chart crosses the MA14 and close to the
downside. If the chart breaks the bottom of the channel and close to the downside, then the down
trend is plausible and we have just to follow the trend.
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