Morning Insights 25th August

Simon Alagbe

Analyst


Instrument: US30

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 28499 with take profit at 28562

Alternative scenario: Sell position is envisaged if price trades below 28216 with take profit at 28077

Fundamentals:

CB Consumer Confidence (US) 3 PM

Comment: US Stocks has been on the upside for some days now and we can attribute that to the low interest rates and US Feds buying back bad securities in the market, in order to keep the US stock market afloat post COVID era. Today, news that the trade talks with the Chinese government have been making some progress would further boost stocks  hence the bullish speculation.




Instrument: USDJPY

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 106.264 with take profit at key level 106.374

Alternative scenario: Sell position is envisaged if price trades below 106.045 with take profit at 105.877

Fundamentals:

CB Consumer Confidence (US) 3PM

Comment: Technically the buck has been weak, but we have seen this instrument break key resistance levels as seen on the chart. The dollar would see an enormous boost for the optimism in the US-China trade deal. The Chinese commerce ministry said there has been a constructive dialogue with their US counterpart and this optimism would reduce the pessimism in holding the dollar to other currencies.

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