Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Trading Opportunities on August 16-20
Information is not investment advice
In this article, we will discuss oil, EUR/USD movements during the past week and try to find short- and long-term trading opportunities.
Oil
Oil demonstrated a positive dynamic during the past week after the massive drop. Data from the US Energy Information Administration on Wednesday showed that fuel demand of the top global crude user has averaged 20.6 million barrels per day (BPD) over the past four weeks, roughly in line with 2019 levels. OPEC agreed to boost oil supply by 400,000 BPD monthly, starting in August. However, there are still concerns that the increase will not be enough to meet demand as the US and Europe ease their coronavirus-induced movement restrictions.
In this case, $73 and $75 levels are the main targets for the upcoming week. You can find more relative technical analysis in the previous article related to oil.
Daily XBR/USD chart
EUR/USD
The currency pair came to the highly important support level at 1.171 after the US employment announcement.
The price has formed a “head and shoulders” pattern and 1-2-3 pattern, both point us to the upcoming decline with the target at 1.12. In short term, we expect to see a pullback up to 1.18 according to RSI and MACD oscillators. In this case, the price will retest the neckline and confirm the pattern. Let’s check both patterns!
Daily chart, “Head and shoulders”
If the price retests neckline from the bottom and bounces off it, the “head with shoulders” patter will be confirmed.
Daily chart, “1-2-3 pattern”
With the RSI divergence, the chart has formed a 1-2-3 pattern. The target measures as the vertical line connecting the 2-pivot point level and the middle point on the line between 1 and 3 pivot points. As soon as the price breaks through the 1.17 support level the pattern will be confirmed.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
Best Instruments to Trade This Week
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Choose your payment system
