Morning Insights 22nd June

Simon Alagbe

Analyst

Instrument: EURUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.12066 with take profit at 1.12443.

Alternative scenario: Sell position is envisaged if price trades below 1.11521 with take profit at 1.111205.

Fundamentals:

No major economic data with direct bearing on the currency pair.

Comment: The common currency lost ground last week owing to the failure of the European Union leaders to agree on a structure for the planned 750 billion euros Covid-19 recovery fund. Some recovery is envisaged on the pair this week as plans to reach an agreement before the summer solidifies. 



Instrument: OILs

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 42.65 with take profit at 43.00

Alternative scenario: Sell position is envisaged if price trades below 42.19  with take profit at 41.24

Fundamentals:

No major economic data with direct bearing on the commodity

Comment: Oil is envisaged to be supported this week by the decline in the number of active rigs in the US and Canada according to Baker Hughes data on Friday. The gains might be limited due  to the concern of the second wave of infection.

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