Morning Insights 31st August

Simon Alagbe

Analyst



Instrument: OIL

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 46.55 with take profit at 46.94

Alternative scenario: Sell position is envisaged if price trades below 46.22 with take profit at 45.65

Fundamentals

No major economic data with bearing on the commodity

Comment: Black gold shrugged off the impact of the Hurricane of Friday and set to extend gains as data from China lend support. The effort by the energy companies to restore operations at U.S. Gulf Coast offshore platforms and refineries shut before the storm could further support the gains.




Instrument: EURUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.19099 with take profit at 1.19448

Alternative scenario: Sell position is envisaged if price trades below 1.18902 with take profit at 1.18264

Fundamentals

No major economic data with bearing on the pair.

Comment: The pair is envisaged to trade higher owing to the dovish stance of the Federal Reserve ahead of the all-important Non-Farm payroll on Friday. Jerome Powell at his speech last Thursday outlined an accommodative shift in the bank's inflation approach meaning rates would stay low for the foreseeable future.


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