The EUR/USD remains undervalue, but the probability of a break above the 1.1020 seems to have increased. If the price breaks the 1.1020 level, it could possibly force the pair as high as 1.1079 and 1.1174 respectively. In contrast, the first support is found at the 1.0916 and 1.0858 respectively. If the price breaks below the 1.0858 level, it could possibly force the pair as low as 1.0581. The RSI (W) remains neutral to oversold territory. CCI (W) closed at the oversold territory.

 

Potential scenarios for the USD Bears

• The Trade-war solution between China and THE U.S. will be negative for the USD, and risk-on in assets.
• More interest rate cuts from the FED could return the world global positive outlook and reduce save-have USD demand.
• In case of soft-Brexit, it will close positive.
• The ECB announced a very optimistic package of measures in September, negatively affecting USD.

 

Potential scenarios for the USD Bulls

• Escalation of the trade conflict will be positive for the USD, and risk-off in assets.
• Global investments are likely to enter the negative territory.
• Delayed FED interest rate cut policy will increase save-have USD demand.
• Asian economies will be affected by the slowdown of Chinese imports.
• The EU and the U.S. economies will feel the pressure for global demand on their exports.
• China's manufacturing capacity will be relocated (negative for the Chinese economy).

Source: Exclusive Capital

 

What Is Relative Strength Index – RSI?

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.

 

What is the Commodity Channel Index (CCI)?

Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

 

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Capital is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

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Christos Nikolaou

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